Saudi Arabia Ramps Oil Exports Amid Pipeline Attacks

The Government of Saudi Arabia increased crude oil exports to 6 million barrels per day in September, the highest level since the conflict with Iran began seven months ago. This surge occurred despite a September 10 drone attack launched from Iraq that disabled the East-West pipeline, a critical route used to bypass the Strait of Hormuz to reach the Red Sea.

To prevent a regional supply crunch, Saudi Arabia sold nearly 100 million barrels of oil to refiners in China, India, Japan, and South Korea for October and November delivery. Because the pipeline was offline, Saudi Aramco redirected these shipments through the Strait of Hormuz, utilizing a shipping lane secured by the United States military along the coast of Oman and implementing ship-to-ship transfers at the port of Sohar. While the pipeline restarted at low volumes this week, full capacity of 4 million barrels per day may take weeks to resume.

Amidst the instability, Saudi Aramco CEO Amin Nasser announced feasibility studies for fourth and fifth export routes to further reduce reliance on the Hormuz chokepoint. Nasser stated that the current crisis is not improving and will likely worsen. This strategic shift aligns with claims by U.S. Treasury Secretary Scott Bessent that the Strait of Hormuz will become a worthless piece of water within two years, though Qatari Energy Minister Saad Al-Kaabi disputed this view.

Security tensions remain high as Saudi Arabia recently intercepted six ballistic missiles fired by Iran-backed Houthi rebels targeting the Yanbu area and the province of Taif.