Saudi Oil Lifeline May Reopen as Aramco Eyes Yanbu Restart

Saudi Aramco has signaled to at least three Asian refiners that they could soon be able to pick up crude cargoes at the Yanbu terminal on the Red Sea, according to anonymous traders quoted by Bloomberg. Yanbu has been a principal export point for Saudi crude that avoids the Strait of Hormuz, but loadings there were halted after the East-West onshore pipeline was struck in drone attacks on September 10. The 750-mile East-West pipeline normally transfers crude from Saudi oilfields to Yanbu, allowing Riyadh to shift many loadings from its eastern Persian Gulf ports. With the pipeline out of service, Saudi authorities increased shuttle-shipping through the Strait of Hormuz and arranged for ship-to-ship transfers from Ras Tanura to vessels at Sohar in Oman to maintain deliveries to customers. Aramco executives have reportedly provided informal assurances about a Yanbu restart to at least three Asian refiners, but they did not specify exact timing for when loadings would resume. Separately, two regional officials told The Associated Press that repairs to the East-West pipeline could take three to five weeks, while a Bloomberg source said Saudi plans aim for partial operations at roughly half capacity within days and a return to full capacity in about six weeks. A recovery of Yanbu loadings, alongside continued shipping through Hormuz, would ease logistical pressure on Saudi crude exports and could help refiners that have been running plants to capture elevated refining margins, particularly in diesel. For now, however, the situation remains contingent on repair progress and formal confirmations from Aramco regarding restart schedules.