Aramco CEO Warns of $200 Oil Without East-West Pipeline

Saudi Aramco's CEO, Amin Nasser, warned that Brent crude prices could have skyrocketed to $200 per barrel without the East-West pipeline. Speaking at an Energy Intelligence event in London, Nasser emphasized the company's ability to quickly bring its full sustainable output of 12 million barrels per day online. He highlighted Aramco's strategic inventories and flexibility in diverting production as key factors in maintaining stable crude deliveries despite recent disruptions.

Brent crude, the benchmark for global oil prices, has remained near $100 per barrel recently, partly due to increased tanker traffic through the Strait of Hormuz. Aramco has ramped up crude loadings from its primary export hub, Ras Tanura, contributing to this price stability. Nasser noted that Aramco's operations have remained reliable even after the temporary shutdown of its main cross-country pipeline following an attack last month. Volumes on the East-West pipeline have since been restored to about 80% of its capacity.

Nasser cautioned that global oil inventories are alarmingly low, leaving markets vulnerable to further supply disruptions. He urged the reopening of the Strait of Hormuz to restore confidence and ease pressure on both crude and refined fuel prices. Despite efforts by Gulf producers to increase output, security threats in the Gulf and Red Sea continue to pose risks to oil markets.

The CEO also mentioned Aramco's plans to develop alternative crude export routes and expand international storage capacity to reduce dependence on any single shipping corridor. He emphasized that while drawing down reserves can provide temporary relief, it will not resolve the underlying supply-demand imbalance.