Saudi minister confirms East-West oil pipeline restart after traders doubted it

Saudi Energy Minister Prince Abdulaziz bin Salman said the East-West pipeline was operating and carrying 5.8 million barrels a day, The National and Al Jazeera reported. His statement confirms the pipeline has restarted. Bets on the restart had climbed from likely to all but certain after the announcement, completing a sharp reversal from earlier doubts.

The odds had been high but unsettled: they dipped on October 5 as reports conflicted over whether a new attack had halted flows. AFP reported an alleged shutdown, while Bloomberg said the pipeline was still flowing. Expectations weakened further into Tuesday morning, then jumped after the minister’s confirmation. Traders had questioned the pipeline’s status for only a short time before the announcement drove the turnaround.

Saudi Arabia had shut the line as a precaution after attacks in September, according to the Energy Ministry, then began restarting it on September 22. Bloomberg reported flows of at least 3.5 million barrels a day by September 28, and later reports put them above 80% of its roughly 7-million-barrel-a-day capacity. The pipeline carries crude from eastern Saudi fields toward export terminals on the Red Sea.

Earlier coverage had already reported the minister’s statement and the near-certain expectations for shorter October deadlines. This announcement also confirms operation for the longer-running question. The minister said the pipeline was operating, and no further scheduled event is needed to establish that it has restarted.