Saudi Arabia restarts East-West pipeline, crude oil prices dip

Saudi Arabia restarted its East-West pipeline on Tuesday, September 22, bringing relief on the oil supply front. The pipeline had been shut down some time earlier following a drone attack, and it has now been resumed at reduced capacity.

Ongoing tension in the Middle East had pushed up prices of petrol, diesel and LPG cylinders several times over this year, directly hitting the common man's pocket. The same tension had forced Saudi Arabia to shut down its East-West pipeline a few days earlier, affecting oil supply.

The pipeline used to carry 4 to 5 million barrels of oil daily. With it now back in operation, supply through the pipeline is expected to rise further going ahead. Meanwhile, crude oil prices have also fallen. Prices that had reached close to 100 dollars a barrel have now dropped to about 97 dollars a barrel.

Notably, after the drone attack in September, Saudi Arabia had taken the major decision to temporarily shut the pipeline. The attack had also damaged the pipeline. With the pipeline resuming operations, Aramco's refineries located near the Red Sea will once again receive oil supply.

Saudi Arabia earlier supplied 4 to 7 million barrels of oil daily through this East-West pipeline. The drone attack had caused heavy damage to the pumping stations. The pipeline has now been restarted from Tuesday, though it is currently operating at reduced capacity. It may take a few weeks to regain the earlier rate of supply.