Saudi Aramco set to resume Red Sea oil loadings after pipeline disruption

Saudi Aramco is reportedly poised to resume crude oil loadings from the Red Sea for Asian buyers. This potential development follows disruptions caused by damage to the East-West pipeline, which had halted regular export routes. The pipeline, a critical channel transporting oil from Saudi Arabia’s eastern fields to the Red Sea, was shut down on September 12 after aerial attacks prompted precautionary measures. The suspension of operations at the Yanbu terminal led to the cancellation and delay of several cargo shipments. Recent adjustments have seen Aramco rerouting oil through alternative Gulf terminals and employing ship-to-ship transfers while the pipeline remains out of service. Key Takeaways Market activity suggests participants are increasingly optimistic about the pipeline restarting by September 30, with odds rising to 81% YES. Reports of Saudi Aramco’s preparations to resume loadings are consistent with a potential imminent restart of the pipeline. The recent market surge implies a belief that the disruption may be resolved sooner than previously anticipated, bolstering expectations for a timely resumption of normal operations. What to Watch Key actors such as the Saudi Mi...