The world has lost more than 2.6 billion barrels of oil since the US-Israeli war with Iran began in February, Aramco President and Chief Executive Amin Nasser said on Tuesday.
Nasser warned that global oil inventories remain critically low despite efforts to reroute supplies and reduce market disruptions. He said the lost volume equals nearly one month of normal global crude production.
Moreover, Nasser stated that even if the Strait of Hormuz reopened immediately, replenishing depleted inventories would take up to 18 months. He estimated the recovery rate at an average of 2.1 million barrels per day.
Meanwhile, Saudi Aramco reported a 44 percent increase in net profit to $32.69 billion for the three months ending June 30. The company attributed the growth to higher prices for crude oil, refined products and chemicals, alongside successful shipment diversions away from the Strait of Hormuz.
Furthermore, Nasser said Aramco maintained business continuity by relying on its diversified assets and long-term planning despite unprecedented supply disruptions.
The situation has become more challenging after Yemen’s Houthi movement announced a blockade targeting Saudi Arabia’s oil industry last month. The blockade has increased pressure on Red Sea shipping routes and threatened the East-West Pipeline and export terminals.
However, Nasser said recent attacks caused only limited production interruptions. He added that Aramco remains confident in restoring operations quickly while using strategic reserves, commercial inventories and alternative export routes to reduce global supply disruptions.
