Aramco CEO warns of $200 oil without East-West pipeline

Saudi Aramco’s chief executive, Amin Nasser, warned that global oil prices could have skyrocketed to $200 per barrel if not for the East-West pipeline. Speaking at the Energy Intelligence conference in London, Nasser emphasized that the pipeline played a critical role in stabilizing markets. He also noted that Aramco can rapidly increase its production capacity to 12 million barrels per day if needed.

Nasser highlighted the fragile state of global oil stockpiles, describing them as “scarily thin.” He cautioned that without the full reopening of the Strait of Hormuz, the pressure on oil markets would continue to intensify. The recent release of emergency stockpiles by major economies, totaling up to 100 million barrels, offers only temporary relief and does not address the underlying supply-demand imbalances.

Despite efforts by Gulf producers to boost production and exports, oil markets remain volatile due to ongoing security risks in the Gulf and Red Sea. Nasser stressed that even after Hormuz reopens, it could take up to two years for energy-consuming countries to replenish their stockpiles. Aramco is exploring alternative export routes and additional storage facilities to reduce reliance on any single method of reaching global buyers.