Full Breakdown
Saudi Arabia Reroutes Crude Through the Gulf After Houthi Pipeline Attacks
By Drooid · · How we work
Core Event: Shift of Saudi Crude Flow to the Strait of Hormuz
In mid-September, Yemen’s Iran-backed Houthi movement struck Saudi Arabia’s East-West pipeline—also known as Petroline—shutting down the line that normally carries up to 7 million barrels per day from the Eastern Province to the Red Sea port of Yanbu. The attack forced Saudi Aramco to halt 4–5 million barrels per day of capacity and move crude shipments from the Red Sea to Gulf export terminals, loading supertankers at Ras Tanura for ship-to-ship transfer in the Strait of Hormuz.
Background & Context
The 1,200 km East-West pipeline had been a cornerstone of Saudi export strategy, delivering roughly 7.5 million barrels per day in early 2024. After the September 11 drone strike that disabled the line, total Saudi crude loadings fell to about 2.1 million barrels per day by mid-September—a decline of more than 70 %. Houthi missile and drone attacks continued, including overnight strikes on Riyadh and Aramco facilities at Yanbu on September 18-19.
Data & Statistics
- Pipeline capacity: 7 million bpd; 4–5 million bpd taken offline after the September 11 strike.
- Loadings after shutdown: 2.1 million bpd (mid-September) vs. 7.5 million bpd (Jan-Feb).
- Gulf flow: Satellite data show Saudi oil moving through the Strait of Hormuz at an average of 2.9 million bpd over the six days following the attacks. Vortexa reports an average of 3.7 million bpd since September 12.
- Super-tanker activity: Bloomberg-derived satellite images recorded seven VLCCs loading a combined 14 million barrels at Ras Tanura on a Sunday.
- Scheduled shipments: Approximately 60 million barrels slated for September–October delivery, mainly to Chinese and South Korean refiners.
- Oil price impact: Brent crude hovered around $100 a barrel, with a brief dip to $101.71 on September 21 and a low of $100.34 on September 21.
Official Statements & Responses
Conflicting Reports & Gaps
- Flow figures: Reuters cites an average of 2.9 million bpd through Hormuz, while Vortexa’s data suggest 3.7 million bpd for the same period. Both figures are presented without reconciliation.
Why It Matters / Impact
The rerouting mitigates the immediate loss of Red-Sea export capacity but raises freight-cost pressures as tankers shuttle between Gulf ports and the Indian Ocean. Record fees—up to a quarter of cargo value—are being charged for trans-it through Hormuz. Although Brent has steadied near $100, refined-product markets remain tight; U.S. diesel prices have surged above $6.51 per gallon, reflecting broader supply constraints. The shift underscores the strategic vulnerability of Saudi oil infrastructure to Houthi attacks.
What’s Next
- Diplomatic outlook: A United Nations meeting this week is expected to address the broader Iran-U.S. situation.
- Pipeline restoration: Analysts caution that full repair of pump stations could require six weeks or more, suggesting a prolonged reliance on Gulf-based export routes.
- Future Houthi activity: Recent strikes on Riyadh and Yanbu indicate a continued capability to disrupt Saudi energy assets, potentially prompting further adjustments to export logistics.