Saudi Arabia Resumes Crude Oil Loading at Yanbu on the Red Sea, Raising Hopes of an Easing Supply Crunch

[Financial News] Saudi Arabia has resumed crude oil shipments and tanker loading through Yanbu Port on the Red Sea coast after restarting operations of the East–West Crude Oil Pipeline, which had been shut down following a drone attack.
On the 29th (local time), Agence France-Presse (AFP) reported that the restart is expected to somewhat improve the outlook for crude oil exports from the Middle East, based on an analysis of trade sources and vessel-tracking data.
Crude oil exports through Yanbu Port were completely halted on the 11th after a drone attack by Iraqi militias shut down the East–West Crude Oil Pipeline. Saudi Arabia subsequently normalized pipeline operations on the 22nd. The resumption of shipments from Yanbu was interpreted as a sign of increased supplies from the Middle East, which had been constrained by the aftermath of the U.S.-Iran war, and contributed to the decline in international oil prices on the 28th.
According to sources in Asia's refining industry, Saudi Aramco notified its customers on the 28th of the October crude oil loading schedule through Yanbu Port. One refinery is reportedly to have already completed cargo loading at Yanbu Port late last week.
Satellite imagery from the European Space Agency (ESA) also supports the resumption of shipments. TankerTrackers.com said on X, "According to ESA satellite imagery taken on September 27, Saudi Arabia was spotted loading about 10 million barrels of crude oil at Yanbu and Al Muajjiz Port," adding, "A total of 40 tankers were identified in the area, including those loading refined petroleum products."
Industry sources estimate that crude oil loading at Yanbu Port has reached about 2 million barrels per day since last week. The shipbuilding and shipping research agency Kpler said the pipeline is currently transporting 2 million to 2.65 million barrels per day. Although this is below the pipeline's maximum capacity of 7 million barrels per day, throughput is expected to increase to 3 million to 4 million barrels per day within days. A full recovery to the pre-attack level of 5.5 million barrels per day is expected to take about another month.
Meanwhile, hopes of easing the Middle East's crude oil supply crunch are growing as the recovery of exports through the Strait of Hormuz is joined by the resumption of shipments from Yanbu Port. According to Kpler, crude oil loading also resumed at Egypt's Sidi Kerir Port on the 22nd after a 10-day halt. However, commercial tankers are still waiting in line because of navigation restrictions.
[email protected] Yoon Jae-jun Reporter