Saudis Reopen Pipeline Bypassing Strait of Hormuz — Reuters
Although the tensions between Iran and the US and Europe have relaxed somewhat in the past couple of months, not everyone is taking for granted that a long-term solution to the Iranian development of nuclear technology will conclude peacefully. Iran’s…
Reuters reports exclusively that the Saudis have been reconditioning and testing the pipeline for several months in advance of the July 1st European embargo on Iranian oil. The Saudis do not want to be caught without an alternative in the event Iran closes the Strait, preventing Saudi crude from exiting the Persian Gulf.
The combined capacity of the Omani and Saudi pipelines is about 20% of the crude that currently passes daily through the Strait. Existing pipelines, whether operable or not, won’t replace the flow of crude through the Strait, but even 3 million barrels/day or so is better than nothing.
Paul Ausick
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
