The East-West Pipeline is the only Saudi Arabian oil export route that exports Saudi Arabian oil without passing through Hormuz.
Saudi Arabia shuts down oil pipeline: Saudi Arabia has shut down the East-West pipeline after drone attacks. This pipeline is also called ‘lifeline’ of oil. This pipeline serves to transport crude oil from the eastern oil producing areas of the country to Yanbu Port on the Red Sea.
The East-West Pipeline is the only Saudi Arabian oil export route that exports Saudi Arabian oil without passing through Hormuz. The capacity of this pipeline is 70 lakh barrels per day. Oil supply through this pipeline built in 1980’s was hit by multiple drones on Thursday. The escalation has rattled oil and shipping routes, strained Yemen’s truce and displaced thousands more civilians. Saudi Arabia’s Ministry of Energy confirmed that the line was shut down ‘as a precautionary measure’.
The effect of the closure of this pipeline of Saudi Arabia will be seen on crude oil prices. Crude oil prices are already hovering around $100. Now the closure of this pipeline will increase the supply crisis. In such a situation, the price of crude oil in the global market is expected to rise further. In terms of India, the increase in oil prices may increase the pressure on oil companies to increase the prices of petrol and diesel.
Iraq’s Prime Minister Ali al-Zaidi, who is also commander-in-chief of the military, ordered an investigation into the Maysan province operations command and dismissed its commander after authorities found that attacks targeting Saudi Arabia were launched from a site in the province, government spokesperson Sabah al-Numan said early on Saturday.
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