Global crude oil and refined fuel supplies could remain under pressure for up to two years as countries work to rebuild inventories depleted by the disruption to shipments through the Strait of Hormuz, Saudi Aramco Chief Executive Amin Nasser has warned.
Nasser said nearly 3 billion barrels of oil supply had been lost since the conflict involving the United States, Israel and Iran began in late February. More than 1 billion barrels have subsequently been withdrawn from global stocks to cushion the shortfall.
He said refilling inventories while continuing to meet normal consumption could create additional demand of about 2 million barrels per day over the next 18 months. Global oil demand is already above 100 million barrels per day.
The warning comes after G7 countries agreed to release 100 million barrels of crude and diesel from emergency reserves. Nasser said such releases could provide temporary relief but would not resolve the underlying supply constraints.
Saudi Arabia has up to 12 million barrels per day of sustainable production capacity available within days, according to Nasser. Aramco is also studying additional export routes and expanded overseas storage to reduce its reliance on the Strait of Hormuz.
The comments underline the wider economic risk from prolonged disruption in one of the world’s most important energy corridors, with tight fuel supplies capable of keeping prices elevated and increasing pressure on businesses and consumers.
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