Global oil market under strain after 1 billion barrels lost amid Hormuz disruption: Aramco CEO

The global oil market has lost around 1 billion barrels of crude over the past two months, with recovery likely to take time even if disrupted flows are restored, Saudi Aramco chief executive Amin Nasser said on Sunday, as shipping disruptions continue to restrict movement through the Strait of Hormuz.

Speaking to Reuters after Aramco reported a 25% rise in first-quarter net profit, Nasser said the company’s priority remained ensuring energy supply continuity under strained conditions.

“Our objective is simple: keep energy flowing, even when the system is under strain,” he said.

The comments come as global energy markets face pressure from disruptions linked to Iran’s blockade of the Strait of Hormuz, which has curtailed shipping activity and pushed prices higher following the United States–Israeli war.

Nasser said reopening shipping routes would not immediately restore balance to the market, which he described as having already lost about 1 billion barrels of supply. He added that years of underinvestment had further tightened already low global inventories, amplifying the shock.

He said the supply disruption could not be quickly reversed even after normal shipping resumes, warning that the system would take time to stabilise.

Saudi Aramco has been relying on its East–West Pipeline to bypass the Strait of Hormuz and maintain exports through the Red Sea corridor, which Nasser described as a “critical lifeline” during the current crisis.

Despite the disruption to shipping routes, he said Asia remains a key demand centre and continues to be a strategic focus for the company.

The Aramco chief had previously warned that prolonged disruption in the Strait of Hormuz could have “catastrophic consequences” for global oil markets. In March, he said the longer the conflict continues, the more severe the impact would be on the global economy.

He also described the current situation as the most severe crisis the region’s oil and gas sector has faced, noting that while the industry had experienced disruptions before, the present shock was on a larger scale.