🚨🇸🇦 Saudi Arabia leaked a repair plan and the oil market treated it like the oil was already flowing...
A person familiar told Bloomberg that Aramco is working around the damaged stretch of the East-West line to restore ~50% of its capacity within days.
Full repairs are still pegged around 6 weeks, and nothing has been fixed yet.
Markets read it as good news anyway. WTI slid off 102.50 toward 101.69, the dollar came off its high, and the S&P spiked to 7,625 before fading.
That reaction only makes sense if you know what the pipe is. It had been moving about 4-5 million barrels a day to the Red Sea, so Saudi crude could skip the blocked Strait of Hormuz.
When drones from Iraq hit it last week, that workaround vanished and oil ripped higher.
Half capacity still leaves half of it missing, and traders bought the recovery anyway, because nothing good has come out of that region in months.
Source: Bloomberg, Reuters / Writer: Daniyal
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