Saudi east-west pipeline repair may take 3-5 weeks - AP

Energy markets are focused this week on how long it will take to restore flows through the Saudi east-west pipeline. The conduit, which began operations when the war started, transports crude across the kingdom to the Red Sea.

Attacks, reportedly originating in Iraq, struck a 100-kilometre stretch of the pipeline in multiple locations early Thursday. There is speculation that eight separate hits occurred.

An Associated Press report indicated that restoring flows will require three to five weeks, while some sources suggest it could exceed six weeks. The pipeline has a capacity of 7 million barrels per day but was operating at around 5 mbpd. Limited oil flow may be possible during repair work.

The pipeline disruption is significant, reversing US gains from Hormuz escort operations and tightening global oil supplies as strategic reserve releases dwindle. West Texas Intermediate crude reached a session high of $104.95, its strongest since mid-May, rising $4.53 on the day.

Consequently, the US 10-year Treasury yield climbed 8 basis points to 4.98%, approaching the critical 5% level.