Disruption to oil exports via the Strait of Hormuz is threatening to delay the market's return to normal until 2027, Saudi Aramco CEO Amin Nasser warned on Monday."The longer the supply disruptions
Disruption to oil exports via the Strait of Hormuz is threatening to delay the market's return to normal until 2027, Saudi Aramco CEO Amin Nasser warned on Monday.
"The longer the supply disruptions continue, even for another few more weeks, it is going to take a much longer time for the oil market to rebalance and stabilize," Nasser told analysts on a call to discuss the company's first-quarter results, which were released on Sunday and beat expectations.
The recovery could drag into 2027 if the situation continues until mid-June, Nasser said.
The impact of the Iran war, including the effective closure of the strait, 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.
The disruption has choked off tanker traffic and sent energy prices surging, stoking fears of spiraling inflation and an economic downturn.
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Aramco has ramped up exports via the East-West
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