Saudi Aramco CEO Warns of Prolonged Oil Market Recovery Due to Hormuz Disruptions
The CEO of Saudi Aramco, Amin Nasser, has issued a warning regarding the prolonged recovery of the global oil market due to disruptions in the Strait of Hormuz caused by the ongoing conflict involving Iran. During an earnings call, Nasser highlighted that the global energy market has lost approximately 1 billion barrels of oil supply since the crisis began. Efforts to reroute shipments and utilize strategic petroleum reserves have provided some relief, but the market remains strained. The closure of the Strait of Hormuz, a critical passage for about 20% of the world's oil supply, has led to a significant reduction in oil output. Saudi Aramco has increased the use of its East-West pipeline, which bypasses the Strait, to mitigate the impact. However, Nasser emphasized that the market may not normalize until 2027 if the disruptions persist. 
