Aramco CEO Warns Oil Market Recovery Will Be Slow
Saudi Aramco's CEO Amin Nasser has sounded a warning about the impact of shipping disruptions on global oil markets. The company reported a 25% jump in net profit in its first-quarter, but Nasser emphasized that the energy market will take time to stabilize even if flows resume.
The Strait of Hormuz, which connects the Middle East to Asia, has been severely impacted by Iran's blockade, resulting in a loss of approximately 1 billion barrels of oil over the past two months. This shortage has driven up prices and squeezed global energy supplies.
Nasser pointed out that even if shipping routes are reopened, it won't be enough to normalize the market quickly. He attributed this to years of underinvestment in the industry, which has left low global inventories vulnerable to disruptions.