Saudi Aramco CEO warns oil markets may not normalize until 2027
Fox Business • • business
Key Points:
- Saudi Aramco CEO Amin Nasser warned that the energy sector faces a prolonged recovery due to supply disruptions caused by the Iran conflict and closures in the Strait of Hormuz, with global oil supply down by about 1 billion barrels during the crisis.
- The closure of the Strait of Hormuz has resulted in a weekly loss of approximately 100 million barrels of oil supply, and if it continues, oil markets may not stabilize until 2027.
- Aramco has increased use of its East-West pipeline, which reached full capacity at 7 million barrels per day, to bypass the Strait of Hormuz and mitigate supply disruptions, with plans to expand export capacity at the Yanbu terminal.
- The conflict and resulting supply shocks highlight the critical role of reliable oil and gas supplies for global energy security and economic stability, compounded by years of underinvestment in the sector.
- Saudi Arabia reduced oil output by 2 million barrels per day in response to Iran's threats to shipping traffic, intensifying the global energy supply shock.