Hot News Review: Saudi Yanbu Resumes Crude Oil Loading, Middle East Supply Outlook Improves

1. According to trade sources and shipping data, Saudi Arabia has resumed loading oil tankers at the Yanbu Red Sea port after the east-west oil pipeline returned to operation, improving the outlook for Middle Eastern oil exports. 2. The resumption of shipments at Yanbu signals a rebound in Middle Eastern oil transport volumes and led to a decline in global oil prices on Monday. Previously, the Iran conflict had restricted oil transportation in the region, and operations at Yanbu were also suspended earlier this month after the pipeline was attacked by drones. 3. An Asian refining industry source said that Saudi Aramco informed customers on Monday evening of the schedule for shipments from Yanbu in October. This refiner had already shipped a batch of crude oil from Yanbu late last week. Saudi Arabia attributed the attack to Iraqi militias. The attack forced Saudi Arabia to shut down the east-west oil pipeline on September 11, which returned to operation last Tuesday. Saudi Aramco did not immediately respond to a request for comment. 4. Ship-tracking agency TankerTrackers reported that, according to satellite images from September 27, Saudi Arabia was loading nearly 10 million barrels of crude oil at Yanbu and Muajjiz, with product oil being loaded as well. The images showed a total of 40 tankers, regardless of whether they were operating or how far they were from the dock. 5. Two trade sources estimated that since last week the crude oil loadings at Yanbu have been around 2 million barrels per day. An industry source said that pipeline throughput is currently about 2 million barrels per day; Kpler data shows around 2.65 million barrels per day, far below the designed capacity of 7 million barrels per day. 6. Kpler expects pipeline throughput to rise to 3-4 million barrels per day in the coming days, but a full recovery to around 5.5 million barrels per day—levels seen before the attack—could take another month. Crude oil inventories at the Yanbu terminal increased by around 1 million barrels on September 22, marking the first rise since the attack. 7. The resumption of crude shipments from Yanbu further indicates that, following the restoration of exports via the Strait of Hormuz, Middle Eastern oil transport volumes are rising. Crude oil loading at Egypt’s Sidi Kerir port also resumed on September 22 after a 10-day suspension, but as related restrictions still prevent most commercial vessels from entering the port, tankers continue to queue offshore pending access.