Brent Slips Below $98 As Saudi Arabia Restarts East-West Oil Pipeline; Exports To Resume Via Red Sea Route

Saudi Arabia has restarted its East-West oil pipeline and could resume crude exports from the Red Sea port of Yanbu later on Tuesday, Reuters reported, citing three sources familiar with the matter.

The pipeline was operating at a low rate, according to two of the sources. The restart could allow Saudi Arabia to resume crude loadings from Yanbu, which were halted after drone attacks forced the kingdom to shut the pipeline on September 13.

The development comes as Brent crude futures slipped below $98 a barrel. Brent futures were last quoted at $98.81, down $1.53, or 1.52%.

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The East-West pipeline, also known as the Petroline, provides Saudi Arabia with an alternative route to transport crude to the Red Sea, reducing its reliance on the Strait of Hormuz for exports.

The pipeline had been shut after drone attacks on September 13 disrupted crude loadings at Yanbu. Yemen's Iran-backed Houthi group claimed responsibility for missile and drone attacks targeting Saudi Arabia's capital Riyadh and facilities belonging to state oil giant Saudi Aramco in Yanbu.

According to the BBC, Houthi military spokesman Yahya al-Sarea said the group launched a large number of ballistic and cruise missiles and drones at what he described as sensitive sites in Riyadh and Aramco facilities on the Red Sea coast. 

The claim came after a column of black smoke was seen rising from what appeared to be fuel tanks near Riyadh's international airport on Saturday. Saudi residents had earlier received air-raid alerts and were advised to remain indoors.

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BBC reported that the Houthi spokesman said the attacks were carried out in response to what he called Saudi Arabia's criminal attempts to target Yemen's capital, Sanaa. He also accused Saudi Arabia of conducting around 300 strikes across Yemen over the past week.

The Houthis have been fighting Yemen's internationally recognised government, which is backed by Saudi Arabia. The group has carried out several attacks on Saudi territory in recent months.

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