[RIA] The global oil market will not return to normal until next year unless shipping traffic in the Strait of Hormuz resumes within a month, said Amin Nasser, CEO of Saudi Aramco.
Or everyone who can pump more does in response to market signals, and Iranian oil is replaced by supply from elsewhere. American is pumping more, as is Venezuela, the UAE has started to, and others will follow. Though I have no idea about the technical issues involved, I would not be surprised if the problem evaporates more quickly than anticipates — and I’d bet that the Saudi Aramco will find itself part of that pumping solution."The longer the supply disruptions continue, even if it lasts for several more weeks, the longer it will take for the oil market to rebalance and stabilize," he said during a video conference to discuss Aramco's first-quarter results.
"The crisis could drag on until 2027 if the impasse in the strait continues until mid-June," he added.
| Could =/= will. |
Nasser recalled that previously, about 70 ships a day passed through the Strait of Hormuz.
Strikes against oil-producing countries in the Persian Gulf and Iran's effective closure of the strait, through which a fifth of the world's oil and gas supplies pass, have negatively impacted production and exports. Before the conflict erupted on February 28, approximately 20 million barrels of oil per day entered the market through this waterway.
On Monday, US President Donald Trump called Tehran's response to US peace proposals completely unacceptable.