Saudi Aramco’s CEO warned of “catastrophic consequences” for the world economy if oil exports through the Strait of Hormuz continue to be blocked.
The state-controlled oil company is using storage facilities around the world to meet customer demand as it deals with “by far the biggest crisis the region’s oil and gas industry has faced,” Amin Nasser said on an earnings call. It is also ramping up oil flows through its East-West pipeline to get its crude out to customers through the Red Sea, bypassing the Strait of Hormuz.
The world’s biggest oil exporter declined to comment on current production levels but suggested it was reducing output due to the lack of export routes. Production could be ramped back up in days, Nasser said. Aramco is also restarting its biggest refinery after a drone strike on the Ras Tanura plant led to a shutdown, but it continues to face attacks on its facilities. The company announced an increase to its base dividend, despite reporting a 12% drop in profit to $104.7 billion. That will bring the minimum payout to shareholders to $87.6 billion this year, most of which will go to the Saudi government.
