Saudi crude shipments to Pakistan resume via Red Sea

Saudi crude shipments to Pakistan through the Red Sea have resumed after drone attacks halted the East-West Pipeline, easing fears of a fuel shortage in a country heavily dependent on imported energy, Arab News reported on Tuesday.

Saudi Arabia restarted the pipeline, which moves crude from eastern oilfields to the Red Sea port of Yanbu, after attacks forced its closure on September 13 and stopped loadings at the terminal. The route allows Saudi crude to bypass the Strait of Hormuz, where shipping has been disrupted since war involving the United States, Israel and Iran began in February. Pakistan had increased use of Yanbu as traffic through Hormuz slowed, and industry officials estimate the corridor now supplies about a quarter of the country's crude requirements.

"Yes, refineries have been intimated about resumption of oil supply from Yanbu," Asad Hasan, chief executive of National Refinery Limited, told Arab News. He said a cargo for a Pakistani refinery was already loading and would finish by 9 p.m. on the day of the announcement, without identifying the refinery, volume, vessel or arrival date.

Reuters reported that the pipeline restarted at a reduced rate, with work underway to restore flows to about 4 million barrels per day, roughly four percent of global oil supply. Brent crude fell more than $2 to around $98 a barrel, its lowest in two weeks, though prices remain elevated.

Hasan said Pakistan needs 14 to 16 crude cargoes a month and about four now arrive through Yanbu and Bab Al-Mandab. "We need about 14-16 cargoes a month, and about four are coming from there," he said. Keeping the corridor open had become important as the country tries to reduce dependence on conflict-affected routes, he said. Pakistani refineries were also looking at supplies from Africa and the United States, but no firm arrangements had been made.

The resumption follows weeks of concern over Pakistan's fuel security. Petroleum Minister Ali Pervaiz Malik said at the weekend that petrol could reach Rs1,000 per litre if an acute shortage developed, but presented it as a possible consequence, not a forecast. Hasan said the remarks had been interpreted as a warning of imminent shortage, but "fuel-wise, shortage concerns aren't really there."

Additional Petroleum Secretary Zafar Abbas said Pakistan had enough fuel for October and would finalize November requirements in coming weeks. "The supply from Bab-al-Mandab is going on. We have enough fuel for October, while November arrangements will be made during the next month," he told Arab News.

A senior official at another Pakistani refinery, speaking anonymously, described the Red Sea corridor as a "lifeline" after Hormuz disruption. Another industry official said restored supplies would not directly cut international prices but would give refineries flexibility and reduce the risk of severe domestic shortages.