Saudi Aramco CEO says oil market won't normalize until 2027 if Hormuz disruption persists
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- Amin Nasser warned that if the Strait of Hormuz stays closed beyond mid‑June, the oil market won’t rebalance until 2027.
- The Strait of Hormuz normally carries about 20 % of global oil, but only 2‑5 vessels now transit daily versus roughly 70 before the war.
- More than 600 tankers are stuck in the Gulf, with about 240 waiting outside Hormuz, creating a “mixed‑up” fleet that must be repositioned.
- The closure is costing the market roughly 100 million barrels of supply each week, totaling over 1 billion barrels lost so far; Aramco’s east‑west pipeline and strategic reserves have offset about 880 million barrels.
- Aramco’s east‑west pipeline (Petroline) has been expanded to 7 million barrels per day, bypassing Hormuz to move crude to the Red Sea.
Why it matters: Oil refiners and airlines risk higher costs as gasoline and jet‑fuel inventories fall to critically low levels before summer, while Aramco’s expanded pipeline and strategic reserves offset some of the 1 billion‑barrel supply loss.
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