Dr. Carole Nakhle, CEO of Crystol Energy, spoke to BBC Persian about Saudi Aramco’s sharp increase in profits in the second quarter of 2026, despite a significant decline in hydrocarbon production. She explained that higher oil prices, combined with Aramco’s low production costs, more than compensated for lower output and exports. Aramco reported net income of $32.7 billion in Q2 2026, compared with $22.7 billion a year earlier, while total hydrocarbon production fell from 12.8 million barrels of oil equivalent per day to 9.5 million. Similar benefits from higher prices were seen among other international oil companies that continued supplying the market during the regional tensions.
Aramco’s net income and hydrocarbon production
Dr Nakhle also highlighted the importance of Saudi Arabia’s East West Pipeline. The infrastructure allows the Kingdom to redirect a significant share of its crude exports towards the Red Sea, reducing its reliance on the Strait of Hormuz and giving it greater flexibility than some neighbouring producers. However, the pipeline cannot fully replace the volumes normally exported through the Strait, meaning Saudi Arabia remains exposed to disruption across regional trade routes.
While higher oil prices have strengthened Aramco’s earnings, Dr Nakhle cautioned against concluding that Saudi Arabia is benefiting from the conflict. Prolonged instability can increase security risks, discourage investment and create a less predictable business environment, with broader implications for the Kingdom’s economic diversification plans. As she explained, Aramco may benefit from higher oil prices in the short term, but Saudi Arabia ultimately has much more to gain from regional stability than from a prolonged conflict.
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