Hormuz Disruptions Threaten Oil Market Recovery into 2027
Saudi Aramco CEO Amin Nasser warned that disruption to oil exports via the Strait of Hormuz could delay the market's return to normal until 2027. The impact of Iran's war has already been called the biggest disruption to the energy market in history.
The market is losing around 100 million barrels of oil a week, Nasser said, adding that two to five vessels are crossing the strait daily versus around 70 in normal times. Even if the strait were to reopen today, it would take months for the market to rebalance, he said.
Aramco has ramped up exports via the East-West pipeline to the Red Sea port of Yanbu to help sustain some 60-70% of its crude export volumes. Nasser on Sunday called the pipeline a 'critical lifeline'. He also predicted a very robust return to demand growth once normal shipping and trade resume.