Amman — Saudi Aramco President and CEO Amin Nasser stated on Tuesday that the ongoing geopolitical crisis in the region continues to worsen the largest supply shock in history, noting that global markets have lost more than 2.6 billion barrels of oil intended for critical industries. Nasser highlighted that Aramco's East-West pipeline, alongside global oil inventories, helped cushion the supply shock, reducing the net supply deficit to approximately 1.8 billion barrels. He explained that the global refining system is under immense strain, pointing out that current trade flows through the Strait of Hormuz stand at one-tenth of pre-conflict levels, and emphasizing that the world will continue to lose more than 100 million barrels of oil for every week the strait remains closed. Nasser noted that even if the Strait of Hormuz were reopened today, replenishing depleted global oil inventories would take up to 18 months at an average rate of 2.1 million barrels per day. He reaffirmed that Aramco continues to strengthen its operational resilience via the East-West pipeline, adding that the company has effectively managed risks for some time. He noted that the Saudi government is addressing these risks and emphasized that this has never constrained the option to utilize the Bab el-Mandeb Strait. Nasser stated that no material operational or financial impact resulted from targets aimed at any of the company's facilities. He added that Aramco's capacity to restore assets and manage attacks—regardless of scale—is six times faster than its peers in the energy sector. Nasser affirmed that the company will continue to leverage all available export routes, including the Bab el-Mandeb Strait, the Suez Canal, the SUMED pipeline, and the Strait of Hormuz. He also emphasized that the company is exploring all strategic options, including expanding the capacity of the East-West pipeline to further boost export capabilities.
Amman — Saudi Aramco President and CEO Amin Nasser stated on Tuesday that the ongoing geopolitical crisis in the region continues to worsen the largest supply shock in history, noting that global markets have lost more than 2.6 billion barrels of oil intended for critical industries. Nasser highlighted that Aramco's East-West pipeline, alongside global oil inventories, helped cushion the supply shock, reducing the net supply deficit to approximately 1.8 billion barrels. He explained that the global refining system is under immense strain, pointing out that current trade flows through the Strait of Hormuz stand at one-tenth of pre-conflict levels, and emphasizing that the world will continue to lose more than 100 million barrels of oil for every week the strait remains closed. Nasser noted that even if the Strait of Hormuz were reopened today, replenishing depleted global oil inventories would take up to 18 months at an average rate of 2.1 million barrels per day. He reaffirmed that Aramco continues to strengthen its operational resilience via the East-West pipeline, adding that the company has effectively managed risks for some time. He noted that the Saudi government is addressing these risks and emphasized that this has never constrained the option to utilize the Bab el-Mandeb Strait. Nasser stated that no material operational or financial impact resulted from targets aimed at any of the company's facilities. He added that Aramco's capacity to restore assets and manage attacks—regardless of scale—is six times faster than its peers in the energy sector. Nasser affirmed that the company will continue to leverage all available export routes, including the Bab el-Mandeb Strait, the Suez Canal, the SUMED pipeline, and the Strait of Hormuz. He also emphasized that the company is exploring all strategic options, including expanding the capacity of the East-West pipeline to further boost export capabilities.
Amman — Saudi Aramco President and CEO Amin Nasser stated on Tuesday that the ongoing geopolitical crisis in the region continues to worsen the largest supply shock in history, noting that global markets have lost more than 2.6 billion barrels of oil intended for critical industries. Nasser highlighted that Aramco's East-West pipeline, alongside global oil inventories, helped cushion the supply shock, reducing the net supply deficit to approximately 1.8 billion barrels. He explained that the global refining system is under immense strain, pointing out that current trade flows through the Strait of Hormuz stand at one-tenth of pre-conflict levels, and emphasizing that the world will continue to lose more than 100 million barrels of oil for every week the strait remains closed. Nasser noted that even if the Strait of Hormuz were reopened today, replenishing depleted global oil inventories would take up to 18 months at an average rate of 2.1 million barrels per day. He reaffirmed that Aramco continues to strengthen its operational resilience via the East-West pipeline, adding that the company has effectively managed risks for some time. He noted that the Saudi government is addressing these risks and emphasized that this has never constrained the option to utilize the Bab el-Mandeb Strait. Nasser stated that no material operational or financial impact resulted from targets aimed at any of the company's facilities. He added that Aramco's capacity to restore assets and manage attacks—regardless of scale—is six times faster than its peers in the energy sector. Nasser affirmed that the company will continue to leverage all available export routes, including the Bab el-Mandeb Strait, the Suez Canal, the SUMED pipeline, and the Strait of Hormuz. He also emphasized that the company is exploring all strategic options, including expanding the capacity of the East-West pipeline to further boost export capabilities.
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Aramco CEO: Strait of Hormuz Closure Costs the World Over 100 Million Barrels Weekly
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