Aramco CEO warns 1 billion barrels lost will slow oil market recovery

The world has lost about 1 billion barrels of oil over the past two months and energy markets will take time to stabilise even if flows resume, Saudi Aramco’s CEO said on Sunday, as shipping disruptions choke traffic through the Strait of Hormuz.

"Our objective is simple: keep energy flowing, even when the system is under strain," Amin Nasser told Reuters in a statement after Aramco reported a 25% jump in net profit in its first-quarter.

Globally, oil reserves have faced a severe hit due to the Iranian blockage of the Strait of Hormuz, where shipments have come down amidst price increases post the war between the US and Israel.

"It is one thing to start reopening our routes again but quite another to normalise a market which has been deprived of about one billion barrels of oil," said Nasser.

He also pointed out that years of under investment further strained the shortage of oil in the global market.

Aramco had used their East-West Pipeline to get rid of the chokehold in the Strait of Hormuz and deliver crude to the Red Sea. This pipeline was referred to by the CEO as a 'lifeline.'

While changes in route are underway, the CEO emphasized that Asia continues to be important to Aramco.