Aramco CEO: Loss of 1 Billion Barrels to Hinder Oil Market Recovery

• Approximately 1 billion barrels of oil have been lost from global markets in the past two months due to disruptions at the Strait of Hormuz
• Aramco is using its East-West Pipeline to bypass Hormuz and transport crude to the Red Sea, described as a 'critical lifeline' during the crisis
• Nasser emphasized that reopening routes will not immediately normalize markets, citing years of underinvestment and strained global inventories as compounding factors

Summary: Aramco CEO Warns of Prolonged Oil Market Recovery

Saudi Aramco CEO Amin Nasser has cautioned that global energy markets face a slow recovery after losing approximately 1 billion barrels of oil over the past two months due to Iran's blockade of the Strait of Hormuz. Speaking to Reuters on May 10, 2026, Nasser emphasized that simply reopening shipping routes won't immediately normalize markets already strained by the supply disruption.

Key Market Impact:

The blockade has severely squeezed global energy supplies, curtailing shipping through the critical Strait of Hormuz and driving oil prices higher. Nasser noted that years of underinvestment in the energy sector have exacerbated the crisis, compounding pressure on already-low global inventories.

Aramco's Response:

To mitigate the supply shock, Aramco has leveraged its East-West Pipeline to bypass the Strait of Hormuz, transporting crude to the Red Sea. Nasser described this asset as a "critical lifeline" during the global supply crisis. The company reported first-quarter results showing a net profit increase, though specific figures weren't disclosed in the statement.

Strategic Focus:

Despite disruptions forcing shifts in shipping routes, Nasser reaffirmed that Asia remains a key priority market for Aramco and central to global oil demand.

Broader Industry Impact:

The crisis is affecting the wider energy sector, with Swiss International Air Lines reporting sufficient jet fuel for only six weeks and exploring contingency measures like "tankering" to address potential shortages.

The situation underscores significant medium-term market instability ahead, with recovery dependent on both route restoration and inventory rebuilding after substantial supply losses.