Aramco CEO: 100M barrels lost weekly at Hormuz
Hadi Noweir, CEO of Saudi Aramco, warned that the world is losing more than 100 million barrels of oil weekly due to the closure of the Strait of Hormuz, as flows have declined to 10% of their pre-Iran war levels. This impacts the global market and disrupts over 2.6 billion barrels of oil, reflecting intense pressure on the global refining system. He indicated that replenishing the depleted inventory could take up to 18 months at a rate of 2.1 million barrels per day, even if the Strait of Hormuz is reopened. Despite the threats, the company continues to export 5 million barrels daily and is working on plans to boost its export capacity through expanding pipeline networks and activating alternative routes such as the Bab el-Mandeb Strait and the Suez Canal. Additionally, Aramco achieved record profits in the second quarter amounting to 121.5 billion riyals, a 42% year-on-year increase, supported by rising oil prices and refined product demand. Noweir emphasized that the company was able to restore its operations more quickly than its peers, despite the attacks on its facilities in July.
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