Saudi Arabia is racing to restore oil flows through the East-West pipeline to half of normal levels within days after the pipeline was attacked by the Houthi group and had to be shut down temporarily. Sources said Saudi Aramco is seeking ways to bypass the damaged section so the pipeline can be partially restored, with a goal of returning to full capacity within six weeks. The halt in shipments through this route pushed crude prices in the London market above 107 dollars per barrel amid concerns over energy supply. After the pipeline stopped operating, Saudi Aramco increased sales of oil from areas outside the Strait of Hormuz, selling about 20 million barrels to Asian refineries including those in China this week, with delivery set for September and October. Meanwhile, Reuters reported, citing sources, that Saudi Arabia is increasing crude deliveries to Asian refineries through ship-to-ship transfers off the coast of Oman's Sohar port, which has helped ease some concerns about oil supply in the Middle East. West Texas Intermediate crude for October delivery closed at 102.43 dollars per barrel, down 3.40 dollars, or 3.2 percent, while North Sea Brent crude for November delivery closed at 105.83 dollars per barrel, down 2.92 dollars, or 2.7 percent.
Saudi Aramco's East-West pipeline was attacked and shut, forcing it to bypass the damaged section and sell oil via costlier alternative routes.
