Geopolitical Crisis Exacerbates Biggest Oil Supply Shock in History

Saudi Aramco CEO Amin H. Nasser warned on Tuesday that the ongoing geopolitical crisis is exacerbating the biggest supply shock in history.

Nasser stated that if the Strait of Hormuz, a critical chokepoint for nearly 20% of global energy supply, were open today, it would take 18 months at an average rate of 2.1 million barrels per day to replenish depleted inventories.

The crisis has led to the removal of an average of 11 million barrels of liquids supply per day, resulting in a loss of over 2.6 billion barrels of oil destined for critical industries.

Aramco's east-west pipeline and global inventories have helped alleviate the supply shock, reducing net losses to around 1.8 billion barrels.