Aramco Set to Benefit From Post-War Surge in Global Oil Demand

RIYADH — Saudi Aramco is poised to benefit from a post-war surge in global oil demand as buyers move to replenish inventories depleted by months of supply disruptions through the Strait of Hormuz, the company’s chief financial officer said.

Ziad Al-Murshed told Asharq Bloomberg that demand is likely to rise because of the “urgent need” to rebuild stocks drawn down during the conflict. “We are well positioned to benefit from the increase in demand,” he said, citing the company’s spare production capacity and strong financial position.

Aramco reported second-quarter net income of $33.4 billion, a 33 percent year-on-year increase that exceeded analyst estimates. Revenue climbed 28.1 percent to $139.1 billion.

CEO Amin Nasser said the conflict has removed an estimated 11 million barrels a day of liquids supply from the market, with more than 100 million barrels lost every week the Strait remained closed. Even if shipping resumes immediately, he cautioned, rebuilding depleted inventories could take around 18 months based on additional supply of 2.1 million barrels a day.

Aramco’s multiple export routes have helped the company navigate the Strait disruption effectively, while high local content usage accelerated repairs to facilities targeted in recent attacks. Al-Murshed noted that Aramco generated a 22 percent return on investment over the 12 months through June 30, the highest in the global oil industry and roughly double the average of its peers. He also highlighted that the company’s gearing ratio declined to 6.2 percent from 6.5 percent over the same period, despite higher cash distributions and new debt issuance. “That decline may appear small, but it is extremely significant because it occurred during the largest crisis in the history of energy markets,” he said.

Also Read:

Exploring the Impact of Middle East Museums on Global Cultural Conversations

Court Hears Witness Testimony on Forced Confessions in Deportation Case