Aramco CEO Warns of Two-Year Oil Supply Recovery After Hormuz Disruption
Saudi Aramco Chief Executive Amin Nasser warned that the global squeeze on crude oil and refined fuel supplies is set to worsen, with a potential two-year recovery period ahead. Speaking at the Energy Intelligence conference in London, Nasser emphasized that even after the Strait of Hormuz fully reopens, rebuilding depleted stockpiles and meeting demand will take significant time.
Nasser highlighted that almost 3 billion barrels of oil supply have been lost since the start of the conflict, while about 1 billion barrels have been released from stocks to offset the shortfall. He cautioned that the remaining 6 billion barrels of oil in storage should not be considered practically available, as the system is already under strain.
The prolonged impact of the Hormuz disruption suggests that supply conditions will remain tight, even after the immediate shipping disruption eases. Producers and refiners will need to rebuild inventories while continuing to meet global demand, potentially keeping supply conditions tight for an extended period.
This warning points to continued volatility in crude and refined fuel markets as inventories fall and the global supply system attempts to rebuild its buffers. Nasser's comments underscore the broader market imbalance that will persist even after physical oil flows are restored.