The oil market will be losing approximately 100 million barrels each week due to ongoing disruptions in the Strait of Hormuz, Saudi Aramco CEO Amin Nasser said on Monday.
Nasser stated that demand rationing is expected to persist as long as supply disruptions continue through the strait. He noted that a robust return to demand growth is anticipated once normal trade and shipping operations resume.
The Saudi state oil giant has the capability to reach a maximum sustainable oil production capacity of 12 million barrels per day within three weeks if needed, according to Nasser.
The CEO described the energy supply shock that started in the first quarter as the largest the world has ever experienced. He warned that if shipping disruptions in the Strait of Hormuz, linked to the U.S.-Iran conflict, continue for several more weeks, the oil market would not return to normal conditions until 2027.
Source:
