Oil Rebound Stalls
Global oil markets face a slow recovery after losing 1 billion barrels due to Strait of Hormuz disruptions, exacerbated by underinvestment.
Atlas Newsdesk ·
Oil Market Recovery Faces Delays The global oil market faces a prolonged recovery period following the loss of approximately 1 billion barrels of oil over the past two months, according to Saudi Aramco CEO Amin Nasser on Sunday, May 10, 2026. This disruption, primarily caused by shipping impediments in the Strait of Hormuz, has significantly tightened global energy supplies and driven prices higher.
Nasser stated that even if shipping routes are fully reopened, the market will require considerable time to stabilize. The U.S.-Israeli war has contributed to Iran's blockade of the Strait of Hormuz, curtailing maritime traffic. Aramco has utilized its East-West Pipeline to reroute crude to the Red Sea, bypassing the Strait and mitigating some immediate supply issues.
The Aramco CEO emphasized that years of underinvestment in the oil sector have exacerbated the current strain on global inventories. Despite the logistical challenges, Nasser reaffirmed Asia's strategic importance as a key market for Aramco and a central driver of global oil demand. Aramco reported a 25% increase in net profit for its first quarter, coinciding with these market developments.