Saudi Aramco: Global Oil Crisis Could Last Until 2027 If Strait of Hormuz Remains Closed

REPUBLIKA.CO.ID, JAKARTA — The global oil market is expected not to return to normal until next year unless shipping traffic in the Strait of Hormuz resumes operations within one month. This was stated by Saudi Aramco, the world’s largest state-owned energy company in Saudi Arabia. “The longer the supply disruption continues, even for just a few additional weeks, the much longer it will take for the oil market to rebalance and stabilise,” said Saudi Aramco CEO Amin Nasser in a video conference discussing the company’s first-quarter results. He added that this crisis could last until 2027 if the deadlock in the Strait of Hormuz persists until mid-June. A market that has already lost one billion barrels of oil due to disrupted production or transportation will continue to lose around 100 million barrels of oil every week as long as the strait remains closed, he said. Nasser also reminded that previously, around 70 ships crossed the Strait of Hormuz per day. Attacks on oil-producing countries in the Persian Gulf, as well as the effective closure of the strait by Iran—a route that carries one-fifth of the world’s oil and gas supply—have had a negative impact on production and export activities in the oil and gas sector. Before the conflict erupted on 28 February, around 20 million barrels of oil per day entered the market through this waterway.