Global Oil Market Faces Slow Recovery After Major Supply Loss, Aramco Says
Saudi Aramco has warned that the global oil market will take time to recover after about one billion barrels of crude were lost over the past two months due to major disruptions in global energy supply routes.
The company’s Chief Executive Officer, Amin Nasser, said the shock to supply has tightened global oil availability and slowed the path back to stability, even if normal flow of shipments resumes soon. He noted that markets cannot immediately return to balance after such a large volume loss.
According to him, years of underinvestment in energy production have worsened the situation, leaving global inventories under pressure at a time when supply chains are already strained. He added that restoring confidence in the market would require sustained stability in production and shipping routes.
Aramco said it has relied on alternative infrastructure, including its East-West pipeline, to move crude outside the affected maritime corridor. The company described the pipeline as critical in maintaining supply flow during periods of disruption.
Despite the challenges, Aramco reported a strong rise in first-quarter profit, supported by steady demand and improved pricing conditions in the global energy market.
Nasser also stressed that Asia remains a key demand hub for the company, even as geopolitical tensions and shipping disruptions continue to affect global energy movement.
