Saudi Arabia's East-West Pipeline (Petroline) has hit its maximum rated capacity of 7 million barrels per day as the Strait of Hormuz blockade enters its fifth week, becoming a critical lifeline for global oil supply. The 1,200-kilometer crude artery, linking the kingdom's eastern oil fields to the Red Sea port of Yanbu, is now operating at levels unseen since its construction in the 1980s.
Aramco Confirms Full Capacity, Bloomberg Data Backs It
Saudi Aramco CEO Amin Nasser told analysts on March 10 that full capacity was days away. Bloomberg confirmed the milestone on March 28, 2026. The pipeline runs from the Abqaiq processing hub in the east across the Arabian Peninsula to Yanbu. In normal times, it carried between 1.7 and 2.8 million bpd; conversion of parallel natural gas liquids lines to crude service enabled the 7 million bpd figure.
At full throughput, roughly 2 million bpd feeds domestic refineries on the west coast, with the remaining 5 million bpd heading to Yanbu for export. However, ship-tracking data tells a mixed story: the five-day rolling average of crude departures from Yanbu oscillated between 3.66 and 5 million bpd, with peak readings above 4 million. The terminal's nominal loading capacity is estimated at 4 to 4.5 million bpd, further reduced by wartime tanker scheduling and tidal windows.
Hormuz Crisis: 20% of Global Oil Supply Disrupted
Since U.S. and Israeli military strikes against Iran began in late February, tanker traffic through the Strait of Hormuz has collapsed. Iran has mined sections and controls passage. The strait normally carries roughly 20% of the world's oil supply; traffic is now down 90-95%. The pipeline offsets only 50-70% of pre-war export volumes, leaving a substantial gap.
International oil prices have reacted sharply. WTI crude closed Friday, March 27, between $99.64 and $101.18 per barrel — a daily gain of more than 5% and a 40% rise over the past month. Brent settled between $105.32 and $112.57. Physical Dubai crude, reflecting actual delivery conditions for Asian buyers, traded near $126 per barrel. U.S. retail gasoline averaged between $3.91 and $3.98 per gallon as of late March, with further pressure expected.
Strategic Reserve Releases and Price Outlook
Coordinated strategic reserve releases totaling around 400 million barrels are now underway globally — the largest on record. Goldman Sachs and S&P Global have revised 2026 price forecasts upward. Industry sources warn that if Hormuz traffic does not recover by mid-April, oil could reach $150-$200 per barrel in a worst-case scenario.
The UAE's Habshan-Fujairah pipeline is running a similar bypass operation. Together, these two pipelines represent the primary physical alternative to Hormuz for Arabian Peninsula crude exporters. President Trump's five-day diplomatic deadline for Iran expired around March 28 without a ceasefire or Hormuz agreement, and analysts see no near-term resolution.
Saudi Arabia's Petroline, rarely operated near full capacity in peacetime, has become one of the most consequential pipelines in the global oil market.