SEATTLE (Oil Monster): Saudi Arabia’s state-owned oil giant, Saudi Aramco, has announced plans to quickly restore a large portion of its crude exports following disruptions caused by escalating tensions in the Middle East. The company said it expects to export nearly 70% of its normal crude shipments within days, using alternative routes to bypass the strategic Strait of Hormuz.
Speaking during an earnings call, CEO Amin Nasser noted that Aramco is ramping up operations at its Red Sea export hub in Yanbu. The port will allow roughly 5 million barrels per day (b/d) of crude to reach global markets through the company’s East-West pipeline, reducing reliance on the Gulf shipping corridor.
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Saudi Arabia typically exports around 7 million b/d, most of which normally passes through the Gulf. However, tensions linked to the ongoing confrontation involving Iran have disrupted shipping activity, affecting a significant portion of global oil supplies.
Nasser warned that prolonged conflict in the region could have serious consequences for global energy markets and the broader economy. Oil prices have surged amid the crisis, with benchmark Brent Crude approaching $120 per barrel earlier this week before easing on expectations of possible diplomatic developments.
Aramco, responsible for nearly 10% of global oil supply, said its spare production capacity would allow it to restore output quickly if necessary.
