Crude oil should be flowing through Saudi Arabia’s vital East-West Pipeline within days, U.S. Energy Secretary Chris Wright told CNBC on Tuesday, after the kingdom was forced to temporarily close it following attacks by Iran-aligned groups.
– “It’s still a detailed assessment, but I think it will be measured in days,” Wright said on the sidelines of a G20 energy meeting in Houston. He said Saudi Arabia is taking steps to move more oil out of the Strait of Hormuz with assistance from the U.S. military.
– Sources that spoke to Reuters gave varying estimates of how long the pipeline would be offline, with one saying the damage could take as long as five to six weeks to repair. Another said it could be fixed sooner and resume pumping partially while repairs take place.
– The 1,200-km (745-mile) East-West Pipeline running across the Arabian Peninsula has served as the main route for global supplies of Middle Eastern oil for the past six months while the strait between Iran and Oman has been largely shut by the Iran war. The pipeline had been moving 4 million to 5 million barrels per day, amounting to 4% to 5% of global supply, sparing Saudi Arabia the brunt of the disruption that has crippled other Gulf oil and gas exporters.
– Washington has resisted Saudi requests for direct military intervention beyond intelligence support, three sources told Reuters on Monday.
– U.S. President Donald Trump said over the weekend he had spoken with Saudi Crown Prince Mohammed bin Salman and that Iran-aligned Houthis, who have launched missile and drone attacks on the kingdom from Yemen, had also contacted Washington urging it to stay out of the conflict.