economy
Saudi Aramco CEO says oil market won't normalize until 2027 if Hormuz disruption persists
Oil inventories are rapidly drawing down as the Strait of Hormuz remains closed, Saudi Aramco CEO Amin Nasser said.
TL;DR
- Normalization of the oil market could be delayed until 2027 if the Strait of Hormuz disruption persists.
- The closure of the Strait of Hormuz, which handles about 20% of global oil supplies, has caused the biggest energy supply shock.
- Over 600 ships, mostly oil and product tankers, are stuck in the gulf, disrupting the global tanker fleet.
- The market is losing 100 million barrels of supply weekly due to the closure.
- Saudi Aramco's east-west pipeline capacity has been increased to bypass the Strait of Hormuz.
- Oil inventories are drawing down rapidly, potentially reaching critically low levels before the summer driving season.