Aramco warns of catastrophic consequences for the global economy due to oil production cuts
The world’s largest oil company, Aramco, has issued a warning about "catastrophic consequences" for the global economy and markets after Saudi Arabia cut its oil production by 2–2.5 million barrels per day, with the UAE reducing production by 500,000–800,000 barrels per day. This move is a reaction to the ongoing crisis in the Strait of Hormuz, posing significant risks to energy markets worldwide.
Aramco CEO Amin Nasser called this crisis the most serious in the region’s history and stressed that the longer the Strait of Hormuz remains blocked, the more severe the impact on the global economy will be. Alongside Saudi Arabia and the UAE, Iraq and Kuwait have collectively reduced oil production by 6.7 million barrels per day, according to Bloomberg. Due to the Persian Gulf crisis, India may soon return to pre-sanction levels of Russian oil imports.
The situation around the Strait of Hormuz—a strategic artery through which about 20% of global oil passes—remains critical, raising concerns about the stability of global energy supplies in the near future.
