Saudi Boosts East-West Pipeline Flow, Pulling Oil Prices Down
Oil prices slipped as Saudi Arabia restored roughly half of the East-West pipeline capacity after drone attacks, easing supply worries.
Saudi Arabia has brought back roughly half of the capacity of its East-West pipeline, a strategic conduit that sidesteps the Strait of Hormuz, after it was hit by drone attacks. The additional crude flow contributed to Brent futures settling under US$103 a barrel, offering temporary relief to a market strained by the US-Iran conflict. Traders note that steady shipments through Hormuz and the revived pipeline are easing supply concerns, though Iran’s leverage over the chokepoint may shift.
The United States is also releasing up to 40 million barrels from its emergency reserve, adding further downward pressure on prices. Meanwhile, regional players such as Oman are expanding oil storage near Hormuz to mitigate future disruptions.
Why it matters
Restoring pipeline flow eases global oil supply worries amid Middle East tensions.
How this story developed
- Sep 3 European gas prices hit three-year high as winter energy outlook grows bleak
- Sep 7 Washington and Caracas have signed a pact giving the U.S. majority control over about a third of Venezuela's oil reserves, with the White House saying it will set the stage for future voting. Neither Donald Trump nor interim President Delcy Rodríguez provided a timetable, sparking frustration among citizens and opposition leaders who see the agreement as entrenching the unelected regime. Republican lawmakers and former officials have voiced both support for the economic boost and concern over its political impact.
- Sep 12 Rough’s production licence is set to expire in April, ending extraction at the site.
- Sep 12 Legal experts have voiced doubts about the pact’s compliance with Venezuela’s Hydrocarbons Law and international conventions.
- Sep 18 The Trump administration finalized a partnership to develop 17 oil fields in Venezuela.
- Sep 22 Iranian carriers suspended several overseas routes after the United States imposed new aviation sanctions, halting flights to Baghdad, Muscat and Qatar while some China services persist.
- Sep 24 Gas storage levels are now reported at about 69% of capacity, below the usual seasonal target.
- Sep 25 Trump publicly voiced support for Saudi self‑reliance against Houthi attacks.
- Sep 25 The UAE has not confirmed an official ban despite the cancellation of Iranian flights to Dubai.
- Sep 27 France announced a military mission to Saudi Arabia.
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