Saudi Arabia’s East-West oil pipeline operating normally: Report

Saudi Arabia’s East-West oil pipeline is operating normally, Bloomberg reported Monday, following an earlier report that a fresh attack had halted flows through the key export route.

Oil continues to flow through the pipeline, Bloomberg said, citing people familiar with the matter.

Other media outlets earlier reported that a new attack on a pumping station in Khurais, east of Riyadh, had caused extensive damage and halted operations, citing an unnamed source working in Saudi Arabia’s energy sector.

Saudi Aramco and the Saudi Energy Ministry did not immediately respond to Bloomberg’s requests for comment, according to the report.

Oil prices pared gains after Bloomberg’s report. Prices had risen as much as 1.2% following the earlier report.

Aramco had increased flows through the pipeline to more than 80% of its 7 million-barrel-per-day capacity by late last week, according to Bloomberg. After supplying refineries on Saudi Arabia’s west coast, about 4.5 million barrels per day remained available for export, it added.

The pipeline connects Saudi Arabia’s eastern oil production facilities with the Red Sea coast, allowing crude exports to bypass the Strait of Hormuz.

Saudi Arabia’s Energy Ministry previously confirmed that attacks on Sept. 10 targeted the pipeline in the Riyadh and Medina regions, prompting a precautionary shutdown.