Saudi Aramco CEO Amin Nasser has warned that continued disruption in the Strait of Hormuz could push any meaningful normalisation in global energy markets into 2027, underscoring mounting concerns over one of the world’s most critical oil transit chokepoints.
Speaking amid escalating volatility in global energy markets, Nasser said that if disruptions in the Strait of Hormuz persist for “a few more weeks,” the market may not return to normal conditions until well into 2027, reported Reuters.
He added that even if the strategic waterway were reopened immediately, the oil market would still require months to rebalance due to the scale of the supply shock already rippling through the system.
Calling the current turmoil unprecedented, Nasser described the energy supply disruption that began in the first quarter as “the largest the world has ever experienced,” signaling the severity of the ongoing strain on global crude flows and supply chains.
The Aramco chief also sought to reassure markets over the company’s ability to ramp up production if needed. He said Saudi Aramco could reach its maximum sustainable oil production capacity of 12 million barrels per day within three weeks if required.
Nasser further revealed that the company produced 12.6 million barrels of oil equivalent per day during the first quarter, highlighting the scale of Aramco’s operations as energy markets navigate heightened geopolitical uncertainty.
The warning comes as Aramco reported a sharp rise in quarterly earnings. The state-owned energy giant said on Sunday that its first-quarter profit surged 25%, helped by higher crude prices and supply concerns triggered by the Iran conflict.
Speaking amid escalating volatility in global energy markets, Nasser said that if disruptions in the Strait of Hormuz persist for “a few more weeks,” the market may not return to normal conditions until well into 2027, reported Reuters.
He added that even if the strategic waterway were reopened immediately, the oil market would still require months to rebalance due to the scale of the supply shock already rippling through the system.
Calling the current turmoil unprecedented, Nasser described the energy supply disruption that began in the first quarter as “the largest the world has ever experienced,” signaling the severity of the ongoing strain on global crude flows and supply chains.
The Aramco chief also sought to reassure markets over the company’s ability to ramp up production if needed. He said Saudi Aramco could reach its maximum sustainable oil production capacity of 12 million barrels per day within three weeks if required.
Nasser further revealed that the company produced 12.6 million barrels of oil equivalent per day during the first quarter, highlighting the scale of Aramco’s operations as energy markets navigate heightened geopolitical uncertainty.
The warning comes as Aramco reported a sharp rise in quarterly earnings. The state-owned energy giant said on Sunday that its first-quarter profit surged 25%, helped by higher crude prices and supply concerns triggered by the Iran conflict.
