DUBAI: Saudi Aramco CEO Amin Nasser has warned that the global oil market will take time to recover after losing nearly one billion barrels of oil over the past two months amid severe shipping disruptions in the Strait of Hormuz.
Speaking to Reuters on Sunday following Aramco’s announcement of a 25 percent increase in first-quarter net profit, Nasser said the energy market remained under significant pressure despite ongoing efforts to maintain stable oil supplies.
“Our objective is simple: keep energy flowing, even when the system is under strain,” Nasser stated.
Global energy supplies have been heavily impacted by Iran’s blockade of the Strait of Hormuz, which has disrupted crude shipments and pushed oil prices higher following the recent US-Israeli conflict in the region.
Nasser cautioned that reopening shipping routes alone would not immediately restore market stability.
“Reopening routes is not the same as normalizing a market that has been deprived of about one billion barrels of oil,” he said, adding that years of underinvestment in the energy sector had further intensified pressure on already low global oil inventories.
To reduce the impact of disruptions in the Gulf, Aramco has been utilizing its East-West Pipeline to transport crude oil to the Red Sea, bypassing the Strait of Hormuz. Nasser described the pipeline as a “critical lifeline” in mitigating the ongoing global supply crisis.
Despite changes in global shipping patterns and heightened geopolitical risks, the Aramco chief reaffirmed that Asia would remain a key strategic market for the company and continue to play a central role in driving global energy demand.
By Reuters
