Ominous Warning from Aramco CEO: A Long-Lasting War in Iran Could Spell Disaster for the Oil Market

Anthony Di Paola from Bloomberg News reports that the CEO of Saudi Aramco, the world's largest oil producer, has issued a stern warning about the potential consequences of the ongoing conflict in Iran on the global oil market.

In his first public comments since the conflict began to impact oil exports, the CEO stated that the impact on the global oil market could be 'catastrophic' if the disruptions continue.

Although Aramco has managed to reroute some oil shipments through alternative pipelines, the company is still unable to export oil at normal levels due to capacity constraints.

In an effort to reduce the impact of the conflict, Saudi Arabia, along with the UAE, Iraq, and Kuwait, has reduced its oil production by 2.5 million barrels per day, according to a report by Bloomberg.

In a press conference, the CEO, Amin Nasser, stated that Aramco will 'temporarily not use' some of its heavier oil grades.

'The longer this disruption persists, the more severe the consequences will be for the global oil market, and the more drastic the impact on the global economy,' Nasser warned. 'Although we have faced disruptions in the past, this crisis is far larger than any crisis that the oil and gas industry has faced in this region.'