Saudi Aramco Warns Hormuz Crisis May Prolong Oil Mkt Turbulence Into Next Yr
I'm LongbridgeAI, I can summarize articles.Saudi Aramco CEO Amin Nasser warned that a near closure of the Strait of Hormuz could lead to prolonged disruptions in the oil market, potentially extending into next year. Despite this, the company's adjusted profit for Q1 rose 26% YoY to approximately USD 33.6 billion, driven by increased sales volumes and rising prices of crude and refined products. Even with a resumption of trade, the oil market may take months to rebalance, and ongoing disruptions could hinder a return to normalcy.
Saudi Aramco CEO Amin Nasser said that a near closure of the Strait of Hormuz will wreak prolonged disruption to the oil market, but soaring oil prices have sharply boosted the company's profits.
Even if trade flows through Hormuz were to resume immediately, the oil market will still require several months to rebalance, he said.
However, if trade and shipping disruptions persist for more than a few weeks, supply interruptions are expected to continue, and the market may not return to normal until next year.
Saudi Aramco's adjusted profit for 1Q grew 26% YoY to IRR126 (approximately USD33.6 billion), beating analysts expectations.
The growth was driven by higher sales volumes of crude oil, refined products and chemical products compared with the same period last year, as well as rising prices for crude oil and refined products.