Saudi oil giant Aramco reported a significant 44% increase in second-quarter net profit today as it reaped higher prices for crude oil, refined products and chemicals while redirecting shipments away from the war-ravaged Strait of Hormuz.
It further warned global oil investors that gain remains diminished by ongoing disruptions from the US-Israeli war with Iran disruptions that have been the most massive in the energy markets’ history.
In this connection, CEO Amin Naseer said: “Despite the unprecedented supply disruption through the Strait of Hormuz we continued to demonstrate our ability to maintain business continuity by capitalizing on our diverse asset base and multi-decade planning.”
The shift carried a steep price for the global supply chain. According to Naseer, the world has lost more than 2.6 billion barrels of oil enterprise-focused including agriculture, semiconductors, automotive, chemicals and manufacturing.
He said releases from strategic reserves come with the demand restrictions and the East-West Pipeline has helped cushion the blow.
The disruptions have further revealed vulnerabilities in the global refining system with strong refining margins signaling ongoing constraints in product markets while refineries globally operate near maximum utilization rates.
He cautioned the industry to absorb further disruptions, so that any extended refinery shutdown can add further pressure to global energy supplies.
The company clarified that total hydrocarbon production averaged 9.5 million barrels of oil per day in the second quarter compared to 12.8 million in the same period last year.
Additionally, Naseer spoke with analysts following the current results, “We remain concerned that the continued disruption via the Strait of Hormuz and the threat to shipping through the Bab el-Mandeb Strait could have a significant long-term impact on the world economy.”
