Saudi Aramco seeks new oil export routes and storage capacity

The push follows months of pipeline strain and supply warnings from chief executive Amin Nasser

Chief executive Amin Nasser has for months pointed to tight global oil supply as the reason behind the search.

In May, Nasser said global stockpiles were running dangerously low, as companies and governments drew down storage to cover a shortfall of 100 million barrels a week caused by the closure of the Strait of Hormuz, Bloomberg reported at the time. In a separate statement roughly two months ago, he put the world's total oil losses since the war with Iran began in February at more than 2.6 billion barrels, and said replenishing inventories could take up to 18 months even if the strait reopened immediately, according to Baird Maritime.

Aramco's East-West pipeline, which carries crude to the Red Sea and bypasses the Strait of Hormuz, reached its maximum capacity of 7 million barrels a day, Nasser said on an earnings call, according to Reuters. He has called the pipeline a critical lifeline for the company, the Saudi Gazette reported. Brent crude was trading near $108 a barrel in mid-September.

By describing the search for extra export routes and storage as necessary rather than precautionary, Aramco signals it views the current supply tightness as more than temporary, a reading consistent with the reorganisation and diversification steps it has already taken. That points toward sustained pressure on crude and diesel prices rather than a quick return to spare capacity.