Aramco CEO Warns of Prolonged Oil Crisis Due to Strait of Hormuz Closure
Saudi Aramco CEO Amin Nasser warned that the global oil market faces a prolonged recovery, potentially lasting until 2027, following the loss of one billion barrels due to the Strait of Hormuz blockade. The closure, driven by conflict involving Iran, the US, and Israel, has caused severe supply deficits and price volatility. Despite mitigating efforts like utilizing the East-West pipeline, Nasser emphasized that reopening shipping routes will not immediately normalize the market, highlighting critical risks to global energy security and economic stability.
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Aramco Warns of Critical Fuel Shortages Amid Strait of Hormuz Closure
Saudi Aramco, the world's largest oil company, has issued a stark warning that global petrol and jet fuel stocks could reach critical levels by summer if the Strait of Hormuz remains closed. This rare public intervention by CEO Amin Nasser highlights escalating concerns over a deepening energy crisis following the outbreak of war with Iran. Nasser stated that onshore reserves are depleting rapidly, with refined fuels experiencing the sharpest declines. He estimated that approximately one billion barrels of oil have been effectively lost from the market since the conflict began and the strategic strait was shut down. Furthermore, every additional week of closure removes another 100 million barrels from global supply. While stockpiles remain the only safety cushion for the energy market, Nasser warned these reserves are significantly eroded. Despite the crisis, Aramco reported higher first-quarter profits, aided by rising oil prices and its ability to redirect exports from the Gulf of Oman to the Red Sea port of Yanbu. The situation underscores the severe geopolitical risks impacting global energy security and supply chains.
Middle East MonitorAramco Warns of One Billion Barrel Oil Shortage Amid Strait of Hormuz Closure
The ongoing closure of the Strait of Hormuz, driven by the conflict involving Iran and a subsequent US blockade, has severely disrupted global energy markets. Amin Nasser, CEO of Saudi Aramco, warned that approximately one billion barrels of crude oil are missing from the world market due to supply interruptions over the past two months. He emphasized that even if deliveries resume, stabilizing energy markets will require significant time. The geopolitical tension has driven up oil prices and restricted global energy supplies. The impact is particularly acute in Asia, where countries heavily reliant on these shipping routes face immediate shortages. In India, the crisis has extended beyond fuel, with authorities urging the population to conserve cooking oil due to broader supply chain disruptions. This situation highlights the fragility of global energy infrastructure amidst regional conflicts, with major economic implications for both producing and consuming nations as they navigate the scarcity and price volatility resulting from the blocked strategic waterway.
derStandard.at | Nachrichten, Kommentare & CommunitySaudi Aramco CEO Warns Oil Markets May Not Recover Until 2027 Due to Hormuz Disruptions
Saudi Aramco CEO Amin Nasser warned that global oil markets may not normalize until 2027 due to severe disruptions in the Strait of Hormuz caused by the ongoing conflict with Iran. During an earnings call, Nasser stated that the crisis has resulted in the loss of approximately 1 billion barrels of oil supply, marking the largest energy supply shock in history. Currently, the world loses about 100 million barrels of oil supply per week as the strategic chokepoint remains largely closed to tanker traffic. Although Saudi Arabia has mitigated some impacts by maximizing its East-West pipeline capacity to 7 million barrels per day and cutting domestic output by 2 million barrels daily, Nasser emphasized that reopening shipping routes does not equate to immediate market normalization. He attributed the prolonged recovery timeline to years of underinvestment in the sector compounded by the conflict. The situation highlights the critical role of reliable energy supplies for global economic security, with Aramco considering further expansions at its Yanbu export terminal to alleviate shipping constraints.
New York PostSaudi Aramco CEO Warns Global Oil Crisis Could Persist Until 2027
Saudi Aramco CEO Amin Nasser warned that the global oil market will not stabilize until 2027 if shipping traffic in the Strait of Hormuz remains blocked beyond mid-June 2026. Speaking during a video conference on first-quarter results, Nasser stated that the market has already lost one billion barrels due to production and transportation disruptions caused by the ongoing conflict between the US-Israel coalition and Iran. If the strait remains closed, the market continues to lose approximately 100 million barrels weekly. The crisis stems from Operation Epic Fury launched by the US and Israel in February 2026, which prompted Iran to close the strategic waterway. Despite a brief ceasefire in April and subsequent US-led initiatives like Project Freedom to assist blocked ships, diplomatic talks in Islamabad failed, and President Donald Trump recently rejected Tehran's peace proposals. The closure of the Strait of Hormuz, which previously handled 20 million barrels of oil daily via 70 ships, has severely impacted global energy supplies and driven up fuel prices.
Sputnik News - World News, Breaking News & Top StorieAramco CEO Predicts Slow Oil Market Recovery After Major Supply Shock
Amin Nasser, the Chief Executive Officer of Saudi Aramco, has stated that the global oil market will require several months to normalize, even if shipping routes through the Strait of Hormuz were to resume operations immediately. This assessment follows a significant disruption in supply chains over the past two and a half months, which has resulted in the loss of approximately one billion barrels from the global supply balance. Nasser emphasized that merely reopening transportation routes does not equate to market normalization, given the substantial volume of oil that has been wiped off the supply ledger. As the world's largest crude oil exporter, Saudi Aramco's outlook highlights the lingering effects of recent geopolitical tensions on energy security. The statement underscores the complexity of restoring equilibrium in oil markets after such a massive shock, suggesting that prices and availability may remain volatile for an extended period despite potential diplomatic or logistical resolutions to the immediate blockage.
Oilprice.comAramco CEO Warns Iran War-Induced Oil Loss Will Delay Market Recovery
Amin Nasser, CEO of Saudi Aramco, has warned that the global oil market faces a prolonged recovery period following the loss of approximately one billion barrels of crude over the past two months. This significant supply shortfall is attributed to the ongoing conflict involving Iran and the subsequent blockade of the Strait of Hormuz, which has severely disrupted key shipping routes. According to a Reuters report cited by Tehran Times, Nasser emphasized that merely reopening these strategic waterways will not immediately normalize the market. The situation is further exacerbated by years of underinvestment in the energy sector, which has left global inventories at critically low levels. Industry analysts suggest that replacing the lost volume could take months, leading to extended price volatility and supply challenges for major importers, particularly in Asia. The crisis highlights the fragility of the current energy landscape, where even the resumption of normal shipping flows cannot instantly undo the impact of such a massive deficit. Consequently, markets are expected to remain unstable, with prices likely to fluctuate as the world grapples with the aftermath of the conflict and the logistical hurdles of restoring supply chains.
tehran timesAramco CEO Warns 1 Billion Barrel Loss Delays Oil Market Recovery
Saudi Aramco CEO Amin Nasser warned that the global energy market faces a prolonged recovery period after losing approximately one billion barrels of oil over the past two months. Speaking to Reuters, Nasser emphasized that merely reopening shipping routes will not immediately normalize a market strained by significant supply deficits and years of underinvestment. The crisis stems from Iran's blockade of the Strait of Hormuz, which has severely disrupted maritime traffic following escalating conflicts involving the United States and Israel. To mitigate these disruptions, Aramco is utilizing its East-West pipeline to transport crude to the Red Sea, a strategy Nasser described as a critical lifeline for global supplies. Despite the geopolitical turmoil and logistical challenges, Nasser reaffirmed that Asia remains a primary focus for Aramco due to its essential role in global demand. The statement coincides with Aramco's report of a 25% increase in first-quarter net profit, highlighting the company's resilience amid regional instability. The situation underscores the fragility of global energy stocks and the complex interplay between geopolitical conflict and economic stability in the oil sector.
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