Aramco CEO Warns of $200 Oil Without Key Pipeline

Amin Nasser, President and CEO of Saudi Aramco, suggested that Brent crude prices could have surged to $200 per barrel without the East-West Pipeline. During a speech at the Energy Intelligence Forum in London, Nasser highlighted that physical crude prices often trade $20-$50 above the Brent benchmark.

Nasser emphasized that Chinese demand for chemicals-related liquids will drive oil demand growth, counterbalancing any declines from electrification. He also noted a strong global push to build additional oil inventories.

The Strait of Hormuz crisis has severely disrupted maritime shipping, straining global supply chains. Aramco is exploring alternative export routes and expanding overseas storage to mitigate these disruptions. Nasser revealed that around three billion barrels have been lost from global oil supplies, nearly half of what normally transits the Strait of Hormuz.

With commercial inventories now below six billion barrels, Nasser warned that rebuilding supplies while meeting demand could take up to two years. He also cautioned that emergency reserves may only cover winter demand but won't solve long-term supply challenges. Aramco is meeting all customer needs and could increase supplies to 12 million barrels per day if required.