Saudi Aramco chief warns Hormuz oil supply squeeze could take two years to ease
Dubai: The global squeeze on crude oil and refined fuel supplies is set to worsen, while rebuilding stockpiles depleted during the Strait of Hormuz crisis could take up to two years, Saudi Aramco Chief Executive Amin Nasser said on Monday. Speaking to Reuters at the Energy Intelligence conference in London, Nasser said oil markets would remain under pressure until the strategic waterway fully…
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.
Written by urgent.news from Gulf News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
