Oil Prices Decline for Third Straight Session Amid Saudi Pipeline Repairs
International oil prices declined for a third consecutive session as market concerns over Middle East supply disruptions cooled markedly. West Texas Intermediate (WTI) crude futures for New York delivery settled down $0.52, or 0.51%, at $101.91 per barrel on Thursday, while London-traded Brent crude futures fell $1.01, or 0.95%, to settle at $104.82 per barrel.
Taking a longer view, Brent crude was trading at only about $72 per barrel before the U.S.-Israel war against Iran began in late February. Prices spiked to $119 in the early stages of the conflict. While current levels have retreated from the peak, they remain more than 40% above pre-war levels.
Saudi Arabia Accelerates Pipeline Repairs
The core reason for the pullback is that Saudi Arabia is accelerating repairs to the East-West Pipeline, which was shut down last week following a drone attack. Market sources indicate that Riyadh plans to restore roughly half of the pipeline’s transport capacity within the coming days. The pipeline is a critical artery for moving crude from Saudi Arabia’s eastern oil-producing region to Red Sea ports, and its closure had triggered fears of a global supply shortage.
Pipeline Details and Recent Damage
The East-West Pipeline stretches 1,200 km in length, from Abqaiq oil field to Yanbu port on the Red Sea. Prior to the recent attack, it was capable of processing 4-5 million barrels per day, accounting for around 4-5% of global supply. The pipeline was damaged between September 10 and 11, 2026, with Saudi Arabia aiming to restore ~50% capacity within days and full repair in approximately six weeks.
Market Reaction and Analyst Assessment
Tension in the physical market has also subsided. Spot Brent crude slipped further to approximately $125 per barrel on Thursday, with the premium over futures narrowing somewhat. The spread between the two remains around $20, reflecting the significant premium the physical market is willing to pay for immediate delivery. The fact that some tankers can still transit the Strait of Hormuz has also partially alleviated investor concerns about supply bottlenecks.
Saudi Arabia’s Logistical Reconfiguration
Saudi Arabia‘s ability to quickly quell market panic hinges on the reconfiguration of export routes. According to data from Matt Smith, head of commodity research at Kpler, Saudi Arabia is now loading crude from the Persian Gulf, transiting the Strait of Hormuz, and conducting ship-to-ship transfers off the coast of Sohar, Oman — allowing tankers to avoid the risk of sailing into the Gulf where they could face Iranian attacks. Ship-to-ship transfer volumes in the Gulf of Oman have climbed from 1.5 million barrels per day in August to 2.7 million barrels per day in September. Meanwhile, Saudi Arabia has suspended loading operations at the Red Sea port of Yanbu and canceled some cargoes destined for European customers.
Impact on Asian Buyers
This logistical reconfiguration is especially critical for Asian buyers, as the additional transshipment volumes are primarily destined for Asian refineries. Japan imports approximately 2.36 million barrels of crude per day, with more than 90% sourced from the Middle East. Following the effect
Original Article: Saudi Arabia Rushes to Repair Oil Pipeline as Crude Prices Fall for Third Straight Session — BigGo Finance — Biggo