Saudi Arabia's East-West oil pipeline was attacked on Monday in the Medina region, according to state media. An official from the Saudi Ministry of Energy reported that the attack caused a "limited fire" that was quickly put out. No injuries or fatalities were reported, and pipeline operations remained unaffected. This pipeline is important for moving crude oil to the Red Sea port of Yanbu, which has seen strong export growth in recent months.
Key Details
The attack comes as tensions continue between Saudi Arabia and the Iran-backed Houthi rebels in Yemen. The Houthis have targeted Saudi oil infrastructure multiple times using drones and missiles. The East-West pipeline has been a key target for attacks, especially since the conflict has disrupted oil flows through the Strait of Hormuz. In September, the pipeline was shut down for several days after drone attacks, which Saudi Arabia linked to sources in Iraq.
Background
On the same day as the pipeline attack, a Reuters survey showed that OPEC output had risen to 90% of pre-war levels, with Saudi Arabia leading the increase. The kingdom raised its production by 970,000 barrels per day to 9.2 million barrels per day, although this is still below early-year rates. The attack on the pipeline highlights ongoing risks to energy infrastructure in the region, which is vital for global oil supply.
The attack on the East-West pipeline could raise concerns about the safety of oil transport routes, especially for Saudi crude. This may lead to increased volatility in oil prices as traders respond to possible supply disruptions. Investors will monitor further developments in the region and any updates on pipeline operations after the attack.
Based on reporting by: aljazeera.com, oilprice.com