Saudi Aramco issues severe warning, oil market recovery may be delayed until 2027

Odaily Odaily reports that amid the ongoing disruption in the Strait of Hormuz, the strain on global energy supply has further intensified. Saudi Aramco issued a strong warning during its latest earnings call, pointing out that the current scale of the shock has reached an unprecedented level.

CEO Amin Nasser stated at a meeting on Monday that if this critical waterway remains blocked, the world could see a reduction of approximately 100 million barrels of crude oil supply per week. Since the outbreak of the current conflict, the cumulative shortfall has reached about 1 billion barrels. Although some of the losses have been partially cushioned by releases from strategic petroleum reserves and alternative transport routes, Nasser emphasized: "We are facing the largest energy supply shock in global history."

The impact of this shock is extending over a longer cycle. The Strait of Hormuz normally handles about one-fifth of the world's oil and gas transport. If the timeline for its restoration continues to be delayed for several more weeks, the repair of market supply-demand dynamics could be forced back to 2027. The resulting disruption is no longer limited to short-term volatility but is placing sustained pressure on the global supply system. (Jin Shi)