Saudi Arabia Restarts Yanbu Oil Shipments as Pipeline Recovery Eases Supply Pressure

Saudi Arabia has resumed crude oil loadings from the Red Sea port of Yanbu after restarting its strategically important East-West Pipeline, marking a significant step toward restoring Middle East oil exports after a drone attack disrupted operations earlier this month. The restart could provide some relief to global oil markets, which have been dealing with severe supply disruptions linked to the conflict involving the United States, Israel and Iran and reduced traffic through the Strait of Hormuz.

Yanbu Oil Loading Resumes

Saudi Aramco has notified customers of its October loading schedule from Yanbu, according to trade sources cited by Reuters. A refinery source said a cargo had already been loaded from the port late last week.

The East-West Pipeline, which transports Saudi crude from the kingdom’s eastern oil-producing region to the Red Sea, was shut after drone attacks on September 11 that Saudi Arabia blamed on Iraqi militias. Operations restarted on September 22, but oil tanker loading at Yanbu initially remained suspended while the system was tested and crude inventories rebuilt.

Two trade sources now estimate crude loadings from Yanbu at around 2 million barrels per day (bpd).

That represents a substantial recovery, although the pipeline is still operating below its previous levels.

Pipeline Capacity Still Below Normal

Kpler estimates current East-West Pipeline throughput at approximately 2.65 million bpd, with flows potentially increasing to between 3 million and 4 million bpd in the coming days.

However, the return to pre-attack operating levels could take longer. Kpler estimates that restoring throughput to approximately 5.5 million bpd could require another month.

The pipeline has a maximum capacity of roughly 7 million bpd and is strategically important because it allows Saudi Arabia to move crude to the Red Sea without relying entirely on the Strait of Hormuz.

Satellite imagery also points to a sharp increase in activity around Yanbu and the nearby Al Muajjiz terminal. Tanker-tracking firm TankerTrackers.com said imagery captured on September 27 showed nearly 10 million barrels of crude being loaded at the two facilities, with around 40 tankers identified in the area.

Middle East Oil Exports Move Toward Recovery

The Yanbu restart comes as other parts of the region also attempt to restore disrupted oil flows.

Kpler estimates that Middle East crude exports, after accounting for gains from Yanbu and Fujairah, have recovered to just under 80% of pre-conflict levels.

Oil movements through the Strait of Hormuz have also increased from their late-July lows. Kpler estimated seven-day average crude transits through the strait, including Gulf of Oman ship-to-ship transfers, at about 9 million bpd through September 22, compared with roughly 2.2 million bpd during the late-July low.

The recovery is significant because the Strait of Hormuz is one of the world’s most important oil shipping routes, making alternative export infrastructure such as Saudi Arabia’s East-West Pipeline strategically valuable.

What It Means for Oil Prices

The renewed Saudi export capacity could put downward pressure on crude prices if additional barrels continue reaching international markets.

Earlier signs of Saudi supply recovery had already helped push Brent crude below $100 a barrel. Reuters reported that increased Saudi shipments from Gulf terminals helped ease concerns about available supply.

However, the oil market remains highly sensitive to geopolitical developments. The pipeline is not yet back to full capacity, while shipping restrictions and security risks around major Middle Eastern energy routes remain.

For now, the return of Yanbu crude loadings gives global buyers another route for Saudi oil—and provides a potentially important buffer as the world’s energy markets remain under intense pressure.