CEO Aramco Warns Global Oil Loss Will Slow Down Market Recovery

CEO of Saudi Aramco, Amin Nasser, has warned that the global oil market will likely take some time to recover even if oil supplies return to normal, due to disruptions caused by Iran's blockade of the Strait of Hormuz.

The world has lost around 1 billion barrels of oil over the past two months, putting pressure on the global energy market, Nasser said in a statement to Reuters.

“Our goal is simple: to ensure a smooth flow of energy, even when the system is under pressure,” Nasser said.

The global energy supply has been severely impacted by Iran's blockade of the Strait of Hormuz, resulting in a significant reduction in oil shipments and higher prices following the US-Israeli conflict.

“Reopening the distribution channels is not the same as normalizing a market that has lost around a billion barrels of oil,” Nasser added, highlighting that the lack of investment over the years has exacerbated the pressure on already low global reserves.

Aramco has been using its East-West Pipeline to transport crude oil through the Strait of Hormuz and into the Red Sea, a vital asset described by Nasser as “the lifeline of our operations” in a bid to alleviate the global oil crisis.

Nasser emphasized that Asia remains the company's top priority and is crucial for global demand. EDY