Saudi Aramco Warns Oil Market Recovery May Be Delayed Until 2027, as Hormuz Strait Risk Exacerbates Supply Shock

BlockBeats News, May 11th - Saudi Aramco has recently stated that the global oil market may face an unprecedented supply shock if the blockage in the Strait of Hormuz continues, potentially delaying the oil market recovery until 2027.

The company's CEO, Amin Nasser, pointed out that if the key shipping route remains closed for an extended period, global oil supply could decrease by approximately 100 million barrels per week, with a cumulative shortfall of nearly 1 billion barrels since the conflict began. He stated that this scale of impact "may be one of the largest in global energy history."

The Strait of Hormuz accounts for about one-fifth of global oil transportation, and if passage is blocked, the supply-demand dynamics will remain under pressure. Saudi Aramco foresees that if the situation cannot be resolved within a few weeks, the global market repair period may be forced to extend until 2027.

To address transportation risks, the company is accelerating the development of alternative export routes, focusing on enhancing the Red Sea Yanbu export terminal capacity and utilizing east-west oil pipelines to bypass the Strait of Hormuz, aiming to increase the related corridor's daily export capacity to over 5 million barrels.

Despite facing supply-side pressures, Saudi Aramco has achieved approximately 25% quarterly profit growth in a high oil price environment, providing financial support for its infrastructure expansion and logistics restructuring.
Analysts point out that the current energy market is entering a high-volatility phase, with geopolitical risks and supply bottlenecks compounding, leading to a reassessment of global energy security and inventory strategies.