Global oil supply buffer running ‘scarily thin,’ Aramco ceo says
Putting markets at risk of worsening unless the Strait of Hormuz reopens.
Saudi Aramco's CEO, Amin Nasser, has warned that the global oil supply crunch, caused by the Strait of Hormuz crisis, may persist for up to two years before improving. Speaking at the Energy Intelligence conference in London, Nasser stated that the pressure on both ends of the oil barrel will intensify until the strategic waterway fully reopens and market confidence is restored.
He noted that nearly 3 billion barrels of oil supply have been lost since the conflict began, with roughly 1 billion barrels having been released from reserves to mitigate the shortage. However, Nasser emphasized that the remaining 6 billion barrels in storage should not be seen as readily available to the market, as the system is already under strain.
He highlighted that producers and refiners will need to rebuild inventories while simultaneously meeting global oil demand, which could prolong the supply tightness even after the immediate shipping disruption subsides.
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