Oil Crisis | Saudi Aramco: If the Strait of Hormuz blockade continues, oil supply will decrease by 100 million barrels per week

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Saudi Aramco’s CEO Amin Nasser said that if a disruption to supplies through the Strait of Hormuz continues at the current pace and the strait remains closed, the oil market will lose about 100 million barrels of oil per week. But if needed, the company can raise oil production to a maximum sustainable level of 12 million barrels per day within 3 weeks.

He said that as long as the supply disruption in the Strait of Hormuz continues, demand rationing is expected to remain in place. If normal trade and shipping resume, demand growth is expected to rebound very strongly.

He also noted that the energy supply shocks that began in the first quarter of this year are the most severe in global history. If the Strait of Hormuz shipping disruption associated with the conflict between the U.S. and Iran continues for several weeks, it may not be until 2027 that the oil market returns to normal.

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