Iran Conflict Removes 2.6 Billion Barrels From Global Oil Supply, Says Saudi Aramco CEO
Saudi Aramco CEO Amin Nasser has described the Iran conflict as 'the biggest supply shock in history,' resulting in an estimated 2.6 billion barrels of crude oil being removed from global supplies.
The Strait of Hormuz disruption, which began with attacks on Saudi energy infrastructure in Yemen and Iraq, has reduced current trade flows to about one-tenth of pre-conflict levels, Nasser said.
This means the world is losing more than 100 million barrels of crude for every week the waterway remains disrupted, he added. If the strait were open today, it would take up to 18 months at an average rate of 2.1 million barrels a day to replenish depleted inventories.
Nasser attributed the crisis to an average of 11 million barrels per day of liquids supply being removed from global markets, while Asia's crude imports fell by around 6 million barrels per day at the peak of the disruption.