By: OrePulse

After last week's attacks that knocked out the East-West Crude Oil Pipeline, Saudi Arabia now expects to restore about half of its throughput within days and have the line fully back online in roughly six weeks.

Running from the Saudi interior to Red Sea terminals, the line gives exporters a way to move crude that sidesteps the congested Strait of Hormuz shipping lane. Brent crude traded near $106 a barrel, down 2.7% in the prior session. In contrast, West Texas Intermediate traded above $102 a barrel, as markets priced in a partial easing of the supply disruption. Crude has climbed by about 75% year-to-date.

Flows through the Strait of Hormuz have continued despite the disruption. US Energy Secretary Chris Wright said 18 million barrels of crude and refined products passed through the strait on a single day earlier in the week, with a seven-day average of 11 million barrels a day. Clarksons Research put the average closer to 8 million barrels a day.

Haris Khurshid, chief investment officer at Karobaar Capital LP, said the pipeline restoration timeline did not mean the market's underlying vulnerability had eased. "I wouldn't call it an all-clear situation," Khurshid said. "The market is getting some capacity back, but it isn't getting its margin for error back."

The pipeline update lands just as President Trump prepares for a Tuesday sit-down with Persian Gulf leaders in New York, held alongside the United Nations General Assembly.