Saudi Arabia’s East-West pipeline, the kingdom’s main route for moving crude around the Strait of Hormuz, came under attack on Monday, the same day a Reuters survey showed OPEC output had recovered to 90% of its pre-war rate. An Energy Ministry official said the pipeline was targeted in the Medina region, causing a limited fire that emergency crews put out with no casualties and no disruption to operations. The line carries Saudi crude to the Red Sea port of Yanbu, which handled the bulk of the kingdom’s export growth in October.
OPEC crude production rose by 1.38 million barrels per day in October to 22.87 million bpd, according to the Reuters survey on Monday, led by Saudi Arabia, Kuwait and Iraq. The group’s 11 members pumped 25.48 million bpd in February, the last month before the war disrupted exports and production across the Middle East.
A separate Bloomberg survey put October output at 22.8 million bpd, up 930,000 bpd from September and 88% of February levels. Saudi Arabia raised production by 970,000 bpd to 9.2 million bpd, more than the group’s net increase, and is still about 800,000 bpd below early-year rates. Iraq added 140,000 bpd to reach 4.15 million bpd, and Kuwait added 130,000 bpd to 2 million bpd. Iran’s output fell 120,000 bpd to 1.9 million bpd, its lowest in Bloomberg survey data going back to 1989, and no tankers have been seen at Kharg Island since late August.
The Iran war has made it impossible for OPEC+ to deliver the production increases it pledged. The members covered by the group’s quota deal pumped about 25 million bpd in August, against a combined target of 31.01 million bpd, and the group held quotas steady for October and November after raising them every month since April. It then extended the hold to December. Members are now reviewing how much crude each country can technically produce ahead of a November 29 ministerial meeting that will set 2027 output targets.
By Charles Kennedy for Oilprice.com
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