Aramco Sees Post-War Oil Demand Surge Amid Conflict-Driven Depletions

Riyadh-based Saudi Aramco is well-positioned to benefit from an expected surge in oil demand following the end of the current conflict, according to Executive Vice President and Chief Financial Officer Ziad Al-Murshed.

The post-war increase in demand will come as buyers seek to replenish depleted inventories drawn down due to supply disruptions through the Strait of Hormuz, with Al-Murshed citing Aramco's 'spare production capacity' and strong financial position as key factors.

During a recent earnings call, Al-Murshed stated that Aramco is 'well positioned to benefit from the increase in demand,' adding that the company has a gearing ratio of 6.2%, which is the lowest among its global oil peers.

In the second quarter, Aramco reported net income of $33.4 billion, a 33% year-on-year jump that exceeded analyst estimates, with revenue climbing 28.1% to $139.1 billion.