Aramco chief warns Hormuz disruption may deepen oil supply squeeze

what happened

According to Newsmetry API, Saudi Aramco President and CEO Amin H. Nasser warned that shortages in crude oil and refined fuels could worsen until the Strait of Hormuz fully reopens. He said commercial onshore oil inventories, which he called “the last available buffer,” had fallen well below six billion barrels, with the vast majority effectively unavailable to the market. Diesel prices had reached approximately $200 per barrel, he added.

Nasser said pressure across the energy chain would continue to intensify until Hormuz reopened completely and confidence returned. Replenishing inventories while meeting demand could take up to two years, he said.

On Saudi Arabia’s expansion plans, the Aramco chief said the company was targeting an approximately 80 percent increase in sales-gas production capacity by 2030 from its 2021 level. Under Vision 2030, the Kingdom is also expanding solar and wind capacity and examining opportunities in hydrogen, CCUS, circular carbon technologies, AI and other advanced digital technologies. Gas and renewables are expected to provide equal shares of electricity generation by 2030. Nasser also called for international efforts to protect regional energy infrastructure and transport routes, noting that the region holds around half of the world’s proven oil reserves and more than 90 percent of its spare production capacity.

why it matters

A prolonged Hormuz disruption could keep pressure on crude and refined-fuel supply, while limited accessible inventories reduce the market’s buffer against further interruptions. Saudi Arabia’s expansion plans also show a parallel focus on gas and renewables alongside oil.

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