finance
Saudi Arabia's East-West Oil Pipeline Attacked by Drone, Capacity of 7 Million Barrels Per Day
Saudi Arabia's East-West oil pipeline, which transports 7 million barrels of crude oil daily from the Gulf to the Red Sea, was struck by a drone. Damage is under assessment following the attack reported by the Financial Times. Separately, Chevron has begun importing 250,000 barrels per day of Venezuelan crude to a US refinery.
Apr 7, 7:00 PM·2m read3 sources
KOWA
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Saudi Arabia's East-West oil pipeline, capable of carrying 7 million barrels per day of crude oil from the eastern Gulf region to the Red Sea, was attacked by a drone. The incident occurred recently, with damage currently being assessed. The pipeline serves as a vital artery for oil exports, bypassing the Strait of Hormuz.
The attack was first reported by the Financial Times. No immediate disruptions to oil flow have been confirmed, but the event raises concerns over infrastructure security in the region. Saudi Aramco, the operator, has not issued an official statement on the extent of the impact.
Pipeline The East-West pipeline, also known as the Petroline, spans approximately 1,200 kilometers across Saudi Arabia.
It was constructed in the 1980s to provide an alternative route for oil shipments amid geopolitical tensions. The pipeline's full capacity supports a significant portion of Saudi Arabia's oil exports, equivalent to about 7% of global supply. In recent years, the infrastructure has faced threats from regional conflicts, including attacks on oil facilities in 2019.
Those incidents led to temporary spikes in global oil prices. The current drone strike aligns with ongoing security challenges in the Middle East.
Development in US Oil Imports Chevron has started processing 250,000 barrels per day of Venezuelan crude at a US refinery.
This marks the resumption of imports following the lifting of certain US sanctions on Venezuela earlier in 2023. The refinery, located in Pascagoula, Mississippi, is now handling the oil under a license granted by the US Treasury. The imports represent a modest volume compared to global trade but signal easing restrictions.
Venezuela's oil production has been hampered by sanctions and infrastructure issues, with output at around 800,000 barrels per day in recent months. Chevron's involvement stems from its long-standing operations in the country.
