RIYADH, Saudi Arabia: The Saudi pipeline outage could put oil flows equal to about 4% of global supply at risk if the damaged East-West route does not restart within days, industry sources said.
Satellite images released Sunday appeared to show severe damage at a pumping station on the 1,200-kilometre pipeline following Friday’s drone attack. Saudi Arabia has not disclosed the full extent of the damage or a timetable for restoring operations.
Reuters sources gave differing repair estimates. One said work could take five to six weeks, while another said partial pumping might resume sooner as repairs continue.
The pipeline has allowed Saudi Arabia to move about 4 million barrels per day to Yanbu on the Red Sea, bypassing the Strait of Hormuz. Industry sources said Yanbu currently has enough export stocks for roughly five to seven days.
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Brent crude rose more than 3.4% on Sunday to above $108 a barrel as concerns over regional supplies intensified.
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U.S. President Donald Trump said Saturday that Iran was probably responsible for the aerial attack. Saudi authorities, however, have blamed drones launched by militants in Iraq. Trump also predicted that the war with Tehran would end “very soon.”
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Diplomatic uncertainty increased after Oman’s Foreign Minister Sayyid Badr Albusaidi said a regional meeting planned for Monday had been postponed “in the interests of consensus.”
Iranian officials had expected to attend and discuss an Oman-linked arrangement for shipping through the Strait of Hormuz.
