Saudi Aramco CEO Amin Nasser issued a stark warning on May 10 about the timeline for oil market recovery. "If trade flows resume immediately or today through the Strait of Hormuz, it will take a few months for the oil market to rebalance," Nasser said in emailed comments. "But if trade and shipping remain curtailed by more than a few weeks from today, we anticipate the supply disruption to persist, and the market to normalize only in 2027."
Nasser leads Saudi Aramco, the world's largest oil company by production and market capitalization. His views carry weight given Aramco's control of a substantial share of global crude supply and infrastructure.
The CEO's assessment reflected concerns about ongoing disruptions affecting global supply chains through the Strait of Hormuz. He said, "While Aramco has been able to mitigate some of the impact thanks to strategic foresight, such as the East-West pipeline, global energy system supplies remain constrained. The energy industry needs to plan and invest more in resilience."
Nasser's warnings accompanied strong financial results for Saudi Aramco. The company reported adjusted net income of $33.6 billion for the first quarter of 2026, up from $26.6 billion in the first quarter of 2025. Cash flow from operating activities reached $30.7 billion during the quarter, with free cash flow of $18.6 billion after capital expenditures of $12.1 billion.
The board declared a Q1 2026 base dividend of $21.9 billion, a 3.5 percent increase year-over-year. The company's gearing ratio rose to 4.8 percent as of March 31, 2026, from 3.8 percent at the end of 2025.
Nasser highlighted the role of Aramco's East-West Pipeline, which reached maximum capacity of 7.0 million barrels of oil per day during the first quarter. "It has proven itself to be a critical supply artery, helping to mitigate the impact of a global energy shock and providing relief to customers affected by shipping constraints in the Strait of Hormuz," he said.
