Amidst the ongoing tension in the Gulf countries, a big relief news has emerged for the whole world. Even though no official agreement has been reached between America and Iran and the attacks by Houthi rebels in the Red Sea are not showing any signs of stopping, despite all this, the prices of crude oil have started falling drastically in the global market.
At present, Brent crude has fallen to around $ 98.65 per barrel in the international market, while the rates of WTI crude have also reached near $ 90. Two big and wonderful news from Saudi Arabia are being said to be the main reasons behind this sudden fall in crude oil prices.
Big news of relief on oil crisis from Saudi
According to a Reuters report, Saudi Arabia has once again fully resumed operation of its famous East-West pipeline. Let us tell you that after the dangerous drone attacks on September 13, Saudi had temporarily closed this 1200 km long strategic pipeline as a precaution. Due to this attack, there was a lot of damage to the pipeline and the oil supply due to it was stuck midway.
Now after repair, it has been reopened and the supply of crude oil has been made smooth. According to the report, the oil supply from this pipeline has been kept slightly low in the initial phase, which is fully prepared to be gradually increased to about 40 lakh barrels per day in the coming days. The biggest advantage of this special pipeline is that it helps Saudi Arabia to deliver oil directly to Yanbu port on the Red Sea without passing through the Persian Gulf and the sensitive Strait of Hormuz. This pipeline alone handles about 4 percent of the world's total oil supply, which is currently keeping oil prices in the global market amid the Hormuz crisis.
Effect of starting oil supply from East-West Pipeline
It has also been made clear in the Reuters report that along with restarting the operation of the East-West Pipeline, Saudi Arabia has also announced to start the export of crude oil through the Red Sea soon. This 1200 km long pipeline is considered the real 'lifeline' of Saudi Arabia's oil industry.
This is the only and safest way to transport crude oil directly from the oil reserves located in the eastern parts of the country to the Yanbu port on the Red Sea in the west. With its help, Saudi Arabia can safely export oil to other countries without crossing the risky maritime border of the Strait of Hormuz. This is the reason why the importance of this pipeline has increased manifold in the current stressful situation.
Saudi Arabia changes oil route and murmur between America and Iran intensifies
On the other hand, Bloomberg has made a big claim in one of its reports that the work of loading crude oil has started once again at the ports of Saudi Arabia. Along with this, another big hope is rising from the corridors of international politics that talks can move forward towards reaching a mutual agreement between America and Iran.
Iranian President Masoud Pejeshkian is currently in New York to participate in the United Nations General Assembly meeting. It is believed in diplomatic circles that during this visit, he may meet US President Donald Trump, where a major consensus can be reached on completely ending the Gulf War and reopening the strategically important Hormuz Strait. If this is achieved on the diplomatic front, then in the coming days we may see a historic and huge fall in the prices of crude oil in the global market, which will directly benefit the general public.