Oil Prices Slump to Lowest Since Before Ukraine Invasion

The fall in oil prices could come as a relief to large consumer nations. EPA
The fall in oil prices could come as a relief to large consumer nations. EPA
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Oil Prices Slump to Lowest Since Before Ukraine Invasion

The fall in oil prices could come as a relief to large consumer nations. EPA
The fall in oil prices could come as a relief to large consumer nations. EPA

Global oil prices dropped on Thursday to their lowest levels since before Russia's February invasion of Ukraine as traders fretted over the possibility of an economic recession later this year that could torpedo energy demand.

Benchmark Brent crude futures dropped more than 3% to $93.81 a barrel after touching a mid-session low of $93.20, the lowest since Feb. 21. West Texas Intermediate (WTI) crude futures fell 2.7% to $88.21 after touching the lowest since Feb. 3 at $87.97.

The fall in oil prices could come as a relief to large consumer nations like the United States and countries in Europe that have been urging producers to ramp up output to offset tight supplies and combat raging inflation, Reuters reported.

Oil had surged to well over $120 a barrel earlier in the year after a sudden rebound in demand from the darkest days of the COVID-19 pandemic combined with supply disruptions stemming from sanctions on major producer Russia over its invasion of Ukraine.

Thursday's selling followed an unexpected surge in US crude inventories last week. Gasoline stocks, the proxy for demand, also showed a surprise build as demand slowed under the weight of gasoline prices near $5 a gallon, the Energy Information Administration said.

The demand outlook remains clouded by increasing worries about an economic slump in the United States and Europe, debt distress in emerging market economies, and a strict zero COVID-19 policy in China, the world's largest oil importer.

"A break below $90 is now a very real possibility which is quite remarkable given how tight the market remains and how little scope there is to relieve that," said Craig Erlam, senior market analyst at Oanda in London.

"But recession talk is getting louder and should it become reality, it will likely address some of the imbalance."

Further pressure followed fears that rising interest rates could slow economic activity and limit demand for fuel. The Bank of England (BoE) raised rates on Thursday and warned about recession risks.



Aramco CEO Warns 1 Billion Barrels Lost Will Slow Oil Market Recovery

President and CEO of Saudi's Aramco, Amin Nasser, speaks during the Future Investment Initiative (FII) in Riyadh, Saudi Arabia October 29, 2024. (Reuters)
President and CEO of Saudi's Aramco, Amin Nasser, speaks during the Future Investment Initiative (FII) in Riyadh, Saudi Arabia October 29, 2024. (Reuters)
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Aramco CEO Warns 1 Billion Barrels Lost Will Slow Oil Market Recovery

President and CEO of Saudi's Aramco, Amin Nasser, speaks during the Future Investment Initiative (FII) in Riyadh, Saudi Arabia October 29, 2024. (Reuters)
President and CEO of Saudi's Aramco, Amin Nasser, speaks during the Future Investment Initiative (FII) in Riyadh, Saudi Arabia October 29, 2024. (Reuters)

The world has lost about 1 billion barrels of oil over the past two months and energy markets will take time to stabilize even if ‌flows resume, ‌Saudi Aramco’s CEO said on ‌Sunday, ⁠as shipping disruptions ⁠choke traffic through the Strait of Hormuz.

"Our objective is simple: keep energy flowing, even when the system is under strain," Amin Nasser told Reuters in a statement after Aramco reported a 25% ⁠jump in net profit in ‌its first-quarter.

Global energy supplies ‌have been sharply squeezed by Iran’s blockade of ‌the Strait of Hormuz, which ‌has curtailed shipping and driven prices higher following the US-Israeli war.

"Reopening routes is not the same as normalizing a market that has ‌been deprived of about one billion barrels of oil," Nasser said, ⁠adding ⁠that years of underinvestment have compounded the strain on already-low global inventories.

Aramco has used its East-West Pipeline to bypass Hormuz and transport crude to the Red Sea, an asset Nasser described as a "critical lifeline" to mitigate the global supply crisis.

Despite shifts in shipping routes, Nasser reiterated that Asia remained a key priority for the company and was central to global demand.


Boeing: Building a Strategic Partnership to Cement Saudi Arabia as a Global Aviation, Tourism Hub

Omar Arekat, Boeing’s vice president for commercial sales and marketing in the Middle East (The company) 
Omar Arekat, Boeing’s vice president for commercial sales and marketing in the Middle East (The company) 
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Boeing: Building a Strategic Partnership to Cement Saudi Arabia as a Global Aviation, Tourism Hub

Omar Arekat, Boeing’s vice president for commercial sales and marketing in the Middle East (The company) 
Omar Arekat, Boeing’s vice president for commercial sales and marketing in the Middle East (The company) 

Boeing is seeking to strengthen its presence in Saudi Arabia, citing significant opportunities to support its regional expansion and stressing that cooperation has evolved beyond aircraft sales into a long-term partnership aimed at transforming the Kingdom into a global aviation and tourism hub.

Omar Arekat, Boeing’s vice president for commercial sales and marketing in the Middle East, said Saudi Arabia is among the company’s most important markets outside the United States, amid rising demand for fleet modernization and expanded air connectivity.

Supporting Transformation

In remarks to Asharq Al-Awsat, Arekat underscored Boeing’s role in supporting the transformation underway in Saudi Arabia’s aviation sector, noting that the partnership, which spans more than 80 years, has entered a deeper and more strategic phase as the goals of Vision 2030 accelerate.

He said one of the clearest signs of that cooperation is orders for more than 140 aircraft across several models, including the 787 Dreamliner and 737-8, reflecting the rapid expansion of the Kingdom’s aviation sector and its growing role in boosting global connectivity while supporting sustainability through more fuel-efficient, lower-emission aircraft.

Arekat added that Vision 2030 has reshaped the aviation sector into an integrated strategic ecosystem driven by economic diversification and higher local content targets, fueling demand for maintenance and repair services and paving the way for the development of local supply chains and aviation-related industries.

Localizing Maintenance

He further underlined that Boeing has expanded its local partnerships to include the localization of maintenance operations and engine repair, as well as exploring opportunities for the initial manufacturing of materials used in the sector, including aluminum and titanium, in cooperation with Saudi companies — a move aimed at strengthening industrial self-sufficiency and building sustainable local capabilities.

On the delivery of Dreamliner aircraft to Riyadh Air, Arekat described the move as a milestone in building the Kingdom’s future aviation network. He said the aircraft offer long-range capabilities and high operational efficiency, supporting the launch of direct flights linking Riyadh with destinations worldwide and reinforcing the Saudi capital’s position as a global travel hub.

He stressed that expanding air connectivity is a major economic driver, contributing to tourism growth, attracting investment and facilitating trade, while also creating direct and indirect jobs as passenger and business traffic into the Kingdom increases.

Global Hub

Arekat said the partnership with Riyadh Air is a key factor in accelerating the Kingdom’s ambitions to become a global aviation hub, despite challenges related to infrastructure, workforce development and regulatory frameworks. He added that such challenges represent opportunities to strengthen cooperation between the public and private sectors, as well as academic institutions.

Addressing geopolitical tensions, he noted that demand for air travel in Saudi Arabia and the wider region continues to grow strongly, supported by major infrastructure investments and long-term development strategies. He added that the sector’s economic fundamentals remain solid despite global volatility.

Human Capital

On workforce development, Arekat stressed that investment in human capital is a cornerstone of the company’s strategy, noting Boeing’s support for education and scientific research through academic partnerships and local training programs that have achieved 100 percent Saudization, in addition to investments exceeding SAR 60 million ($16 million) in community initiatives since 2012.

He added that partnerships with Saudi carriers are playing a key role in strengthening the Kingdom’s position within global supply chains through the use of digital solutions, data analytics and operational expertise, helping improve efficiency, enhance the passenger experience and cement Saudi Arabia’s role as a regional hub for aviation services and industries.

 

 


Saudi Aramco’s Q1 Profit Rises 25% on Higher Sales, Key Pipeline Full

Saudi Aramco's logo during the CERAWeek energy conference 2026 in Houston, Texas, US, March 24, 2026. (Reuters)
Saudi Aramco's logo during the CERAWeek energy conference 2026 in Houston, Texas, US, March 24, 2026. (Reuters)
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Saudi Aramco’s Q1 Profit Rises 25% on Higher Sales, Key Pipeline Full

Saudi Aramco's logo during the CERAWeek energy conference 2026 in Houston, Texas, US, March 24, 2026. (Reuters)
Saudi Aramco's logo during the CERAWeek energy conference 2026 in Houston, Texas, US, March 24, 2026. (Reuters)

Saudi oil giant Aramco reported on Sunday a 25% rise in first-quarter net profit, mainly due to higher sales, while the East-West crude pipeline that circumvents the Strait of Hormuz has reached its full capacity.

The world's top oil exporter reported net profit of $32.5 billion in the three months ended March 31, beating an LSEG consensus estimate of $30.95 billion. Total revenue climbed 11.4% from the previous quarter to $115.49 billion.

Aramco CEO Amin Nasser, who had ‌warned during the ‌company's previous earnings of "catastrophic consequences" if the ‌strait remains ⁠shut, said the ⁠results reflect strong resilience and operational flexibility in a "complex geopolitical environment".

Iran's effective blockade of shipping through the crucial waterway following the US-Israeli war against it prompted Aramco to ramp up crude flows from its production heartland on its east coast to the port of Yanbu on ⁠the Red Sea.

"Our East-West Pipeline, which ‌reached its maximum capacity of ‌7.0 million barrels of oil per day, 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," Nasser said in a statement.

"Recent events have clearly demonstrated ‌the vital contribution of oil and gas to energy security and the global economy, and ⁠are a ⁠stark reminder that reliable energy supply is critical."

Aramco's adjusted net profit for the quarter was $33.6 billion, beating a company-provided median estimate from 13 analysts of $31.16 billion. The figure strips out $1.06 billion in non-operational accounting items, which were mainly tied to changes in inventory replacement costs, paper gains or losses on energy trading contracts and certain financing expenses.