Energy, Oil & Gas

Saudi pipeline pumping 7 million bpd of oil, bypassing Hormuz

Saudi pipeline pumping 7 million bpd of oil, bypassing Hormuz
Image by Laarow/ iStock

Saudi Arabia's East-West pipeline, which circumvents the Strait of Hormuz, is pumping oil ‌at its full capacity of 7 million barrels a day, Bloomberg News reported, citing a person familiar with the matter.

Crude oil exports from Saudi Arabia's Yanbu port on the ⁠Red Sea have now reached 5 million barrels a day, and the country is also exporting about 700,000 to 900,000 barrels a day of oil products, the Bloomberg report said.

Amin Nasser, Aramco CEO, had told reporters earlier in March on ‌an ⁠earnings call that the East-West pipeline was expected to reach its full capacity of 7 million bpd in the coming days as customers re-route.

The conflict in the ⁠Gulf region, triggered by US and Israeli attacks on Iran, has unsettled energy and transport markets and disrupted global ⁠shipping, reported Reuters.

Iran has effectively closed the Strait of Hormuz, trapping roughly a fifth of the world's oil ⁠and liquefied natural gas supplies, sending crude oil surging above $100 a barrel.