Riyadh Combines Supply Security and Diplomacy to Calm Energy Markets

A Saudi Aramco facility (Aramco)
A Saudi Aramco facility (Aramco)
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Riyadh Combines Supply Security and Diplomacy to Calm Energy Markets

A Saudi Aramco facility (Aramco)
A Saudi Aramco facility (Aramco)

As mounting geopolitical tensions threaten global energy supply routes, Saudi Arabia has emerged as a pivotal player in safeguarding oil market stability, drawing on a combination of strategic infrastructure and active diplomacy.

By maintaining the flow of exports through the East-West Pipeline, which transports around 7 million barrels per day to the Red Sea away from sensitive maritime chokepoints, alongside its central role within the OPEC and OPEC+ alliance and its political efforts to ease regional tensions, the Kingdom has reinforced its position as one of the world's most reliable energy suppliers. These efforts have helped curb market volatility and preserve global energy supply security.

Saudi Arabia has also played a central role within OPEC+ in maintaining market balance, leading efforts to coordinate production levels in a way that limits sharp price swings and prevents significant supply shortages or surpluses. This role has strengthened confidence among both producers and consumers in the alliance's ability to respond effectively to crises.

East-West Pipeline

In this context, former senior adviser to the Saudi oil minister Mohammed Al-Sabban told Asharq Al-Awsat that Saudi Arabia and its partners have successfully maintained export flows through the East-West Pipeline, which was built in the mid-1980s. Without it, he said, the market would have faced severe disruptions under current conditions.

Al-Sabban explained that the pipeline carries approximately 7 million barrels per day, a volume that has played a major role in stabilizing markets. He added that Saudi Arabia has also contributed to oil market stability through OPEC and OPEC+, reinforcing its standing as a dependable and reassuring supplier capable of meeting global demand.

He added that Saudi Arabia continues to pursue solutions acceptable to both sides through its direct and indirect contacts with Iran and the United States, playing an active role in de-escalation efforts while supporting the stability of global energy markets.

Infrastructure

Energy specialist Nayef Al-Dandani told Asharq Al-Awsat that Saudi Arabia maintained uninterrupted crude exports during the 2026 Strait of Hormuz crisis and continued supplying global markets despite severe disruptions to maritime navigation. He said this achievement played a key role in limiting global supply shocks and stabilizing markets thanks to prior planning, alternative infrastructure, and regional coordination.

Al-Dandani said the East-West Pipeline, also known as Petroline, served as the Kingdom's primary export artery and provided a critical alternative to the Strait of Hormuz, the center of the disruption. The pipeline stretches from Saudi Arabia's Eastern Province to the Red Sea port of Yanbu and has a capacity of up to 7 million barrels per day.

During the crisis, Saudi Arabia redirected most of its exports through the pipeline, enabling it to ship around 4 million to 5 million barrels per day while bypassing the Strait of Hormuz. Al-Dandani said the pipeline later returned to full operating capacity after sustaining temporary damage. He added that Red Sea ports played a fundamental role by becoming key export hubs, with shipments rising significantly and export volumes through Yanbu increasing by more than 300 percent compared with previous periods during some months.

Alternative Routes

Al-Dandani added that Saudi Arabia worked closely with its regional partners, holding discussions with Kuwait, Bahrain, and other countries to expand pipeline networks and accommodate their crude exports. Overseas storage facilities operated by Saudi Aramco, together with Egypt's SUMED pipeline, also supported oil flows to Europe and Asia.

He stressed that Riyadh maintained its credibility as a global supplier and continued to honor its commitments despite a decline in overall Gulf exports. Tracking data also showed that Saudi crude continued flowing through alternative and partial routes, demonstrating strong logistical flexibility.

"This success did not prevent a temporary decline in export volumes, but it averted a complete supply breakdown and helped avoid catastrophic oil price scenarios," he said.

These developments come as recent events have reinforced analysts' assessment of Saudi Arabia's importance in stabilizing global energy markets. Saudi Aramco announced on Monday that it continues to maintain reliable energy supplies despite geopolitical disruptions, supported by its diversified infrastructure, led by the East-West Pipeline and export facilities on the Red Sea.

The announcement followed days after OPEC+ decided to proceed with its gradual production increase beginning in September, a move reflecting continued coordination among leading producers under Saudi leadership to preserve market balance.

The decision aligns with what experts told Asharq Al-Awsat: that the Kingdom's robust infrastructure, leadership within OPEC+, and diplomatic efforts to reduce regional tensions have been key factors in limiting market volatility and safeguarding global energy supply security.



Oil Prices Fall on Easing Fears Over Saudi Supply Disruption

FILE PHOTO: Vessels near the Strait of Hormuz, as seen from Musandam, Oman, September 2, 2026. REUTERS/Stringer/File Photo
FILE PHOTO: Vessels near the Strait of Hormuz, as seen from Musandam, Oman, September 2, 2026. REUTERS/Stringer/File Photo
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Oil Prices Fall on Easing Fears Over Saudi Supply Disruption

FILE PHOTO: Vessels near the Strait of Hormuz, as seen from Musandam, Oman, September 2, 2026. REUTERS/Stringer/File Photo
FILE PHOTO: Vessels near the Strait of Hormuz, as seen from Musandam, Oman, September 2, 2026. REUTERS/Stringer/File Photo

Oil prices fell 2% on Friday, extending losses for a third straight session as easing concerns over Saudi supply disruptions outweighed anxiety about a widening of conflict across the Middle East.

Brent crude futures fell by $2.14, or 2%, to $102.68 a barrel by 0806 GMT. US West Texas Intermediate futures fell $1.83, or 1.8%, to $100.08, Reuters reported.

Benchmark Brent prices are on track for their first weekly loss in three.

Prices climbed to close to four-month highs earlier in the week after sources said crude loadings ⁠at Saudi Arabia's Red Sea export hub of Yanbu had been suspended and Riyadh cancelled some deliveries to Europe after its East-West pipeline was damaged in an attack last week.

However, prices have cooled since on reports that Saudi Arabia was seeking to restore about half the capacity of its East-West oil pipeline within days.

Saudi Arabia has sold about 60 million barrels of crude from its Gulf port of Ras Tanura inside the Strait of Hormuz for loading via ship-to-ship transfer at the Omani port of Sohar this month and next, multiple trade sources said on Friday.

The rebound in Saudi Aramco's exports from inside the Gulf to between 1 million to 1.5 million barrels per day on average, similar to or slightly higher than August's levels, has cooled global oil prices as it could make up for some of the ⁠volume lost at its port of Yanbu.

Chinese and South Korean refiners are among the top buyers of the spot supplies, while some volumes will be going to India and Japan, said the sources, who spoke on condition of anonymity.

"Recent efforts ‌to restore Saudi export capacity have reduced some of the immediate supply ‌anxiety," said Priyanka Sachdeva, head of market insights at Phillip Nova.


ECB's Lagarde Keeps Door Open to Early Exit

European Central Bank (ECB) President Christine Lagarde addresses a press conference after a meeting of the Governing Council of the European Central Bank (ECB) in Berlin on September 10, 2026. (Photo by John MACDOUGALL / AFP)
European Central Bank (ECB) President Christine Lagarde addresses a press conference after a meeting of the Governing Council of the European Central Bank (ECB) in Berlin on September 10, 2026. (Photo by John MACDOUGALL / AFP)
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ECB's Lagarde Keeps Door Open to Early Exit

European Central Bank (ECB) President Christine Lagarde addresses a press conference after a meeting of the Governing Council of the European Central Bank (ECB) in Berlin on September 10, 2026. (Photo by John MACDOUGALL / AFP)
European Central Bank (ECB) President Christine Lagarde addresses a press conference after a meeting of the Governing Council of the European Central Bank (ECB) in Berlin on September 10, 2026. (Photo by John MACDOUGALL / AFP)

European Central Bank President Christine Lagarde on Friday kept the door open to leaving her post early, replying "we'll see" when asked if she would remain in the position until her term ends ‌in October 2027.

"I ‌leave in ‌2027," ⁠Lagarde told Irish ⁠national broadcaster RTE in response to a question on rumors of her early resignation that have persisted for most ⁠of this year.

When asked ‌if ‌that meant October 2027, ‌Lagarde replied: "We'll see."

"What I ‌can tell you at this point is that whatever the time, it will be ‌handled in the most professional way as ⁠it should ⁠be," she added.

Sources told Reuters this week that France would back Dutchman Klaas Knot to succeed Lagarde as part of a bargain in which a French candidate would be picked for chief economist.


5 Countries Want Smaller Growth of Next EU Budget, Spain Offers Ideas

FILE PHOTO: European Union flags flutter outside the European Commission headquarters in Brussels, Belgium April 29, 2026. REUTERS/Yves Herman/File Photo
FILE PHOTO: European Union flags flutter outside the European Commission headquarters in Brussels, Belgium April 29, 2026. REUTERS/Yves Herman/File Photo
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5 Countries Want Smaller Growth of Next EU Budget, Spain Offers Ideas

FILE PHOTO: European Union flags flutter outside the European Commission headquarters in Brussels, Belgium April 29, 2026. REUTERS/Yves Herman/File Photo
FILE PHOTO: European Union flags flutter outside the European Commission headquarters in Brussels, Belgium April 29, 2026. REUTERS/Yves Herman/File Photo

Germany, Denmark, Finland, the Netherlands and Austria said on Friday the European Union's budget for 2028-2034 must be "several hundred billion euros" smaller than the €2 trillion proposed by the European Commission, drawing battle lines before EU budget talks come to a head in the next three months.

The leaders of the five countries, among the biggest net contributors to the budget, wrote in a joint op-ed in Politico that EU taxpayers ⁠cannot keep paying ⁠more to pay for both old and new priorities.

"It (the budget) is too focused on subsidies and transfers allocated largely in advance, leaving too little room for what Europe urgently needs: common investment in security and defense, competitiveness, innovation, and the fight against irregular migration," the five leaders said.

Net beneficiaries of the EU budget are concerned that ⁠would reduce EU funds for farmers and for equalizing standards of living between the poorer and richer regions of Europe -- a major political concern before parliamentary elections next year in France, Italy, Spain, Poland, Greece, Finland, Slovakia and Estonia.

The European Commission has proposed the budget should amount to €2 trillion or 1.26% of EU Gross National Income (GNI), of which some 168 billion, or 0.11% of GNI, is to service the EU's borrowing for the post-pandemic recovery fund. The five leaders called the proposed nominal increase of around 60% over the 2021-2027 budget "simply not ⁠realistic."

"This is ⁠why we call for a balanced cut to the Commission’s proposal of several hundred billion euros," Reuters quoted them as saying.

To help find a solution, Spain proposed to change the repayment schedule of part of the EU post-pandemic borrowing, linking it to economic growth and spreading it out over a longer period. This, according to Spanish Economy Minister Carlos Cuerpo, would free up some €70 billion.

"An annual payment of about 0.06% of EU GDP would retire the debt by 2058, the deadline agreed by member states," Cuerpo said.

EU governments will discuss the next EU budget at summits in October, November and December in an effort to get a deal before the end of the year.