Aramco warns of severe oil supply pressures due to Strait of Hormuz crisis

Saudi Aramco has issued a stark warning about severe global oil supply pressures, highlighting the impact of the Strait of Hormuz crisis. CEO Amin Nasser revealed that approximately 3 billion barrels of oil have been lost since the start of the current disruptions, equivalent to half the typical volume transported through the Strait of Hormuz. Nasser explained that maritime shipping has been heavily affected, leading Aramco to consider alternative routes for crude oil exports and expand storage facilities outside Saudi Arabia to mitigate short-term disruptions.

Nasser noted that the world entered the crisis with about 10 billion barrels of oil inventories, with over 1 billion barrels already drawn to address supply shortages. He warned that remaining commercial inventories are less than 6 billion barrels, with much of these stocks unavailable for immediate trading due to logistical constraints. The pressure on oil and its derivatives is expected to persist until the Strait of Hormuz reopens and shipping confidence is restored.

The CEO cautioned that emergency reserves might cover winter needs but are insufficient for the long-term supply crisis. He projected that replenishing global inventories and meeting growing demand could take up to two years.