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Saudi Aramco, the largest oil company in the world, has announced its plans to resume about 70 percent of its normal crude shipments to global markets within days. Amin Nasser, the CEO of Saudi Aramco, revealed during an earnings call that the company is working on ramping up exports from its Red Sea port of Yanbu. This strategic move will allow approximately 5 million barrels per day to reach global markets without having to pass through the Strait of Hormuz.
Typically, Saudi Arabia exports around 7 million barrels per day, with only a small portion departing from the Red Sea. However, due to the ongoing tensions in the region, particularly with Iran’s threats to shipping, the vital Strait of Hormuz has been largely closed off, disrupting global oil supplies. This has led to production cuts in countries like Iraq, Kuwait, and the United Arab Emirates.
Nasser expressed concerns about the prolonged conflict in the Middle East, warning of catastrophic consequences for the oil market and drastic impacts on the global economy. As the world’s largest oil producer, any disruption to Aramco’s operations is closely monitored by oil markets.
The escalating tensions have caused oil prices to surge, with Brent crude reaching nearly $120 a barrel before President Donald Trump suggested a potential resolution to the conflict. G7 energy ministers are set to convene to discuss releasing strategic oil reserves, helping to stabilize prices around $90 a barrel.
Aramco has instructed its customers to load from the west coast due to the inability to navigate into the Gulf. The company is utilizing its full pipeline capacity to meet the demand, with west coast refineries consuming approximately 2 million barrels per day. Despite the challenges, Aramco maintains spare capacity to quickly restore output if necessary.
In its latest annual results, Aramco reported an adjusted net income of $104.7 billion in 2025, a 5 percent decrease from the previous year. The company remains resilient in the face of geopolitical uncertainties and continues to play a significant role in the global oil market.
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