DUBAI ― The world has lost about 1 billion barrels of oil over the past two months and energy markets will take time to stabilize even if flows resume, Saudi Aramco’s CEO said on Sunday, as shipping disruptions choke traffic through the Strait of Hormuz.
"Our objective is simple: keep energy flowing, even when the system is under strain," Amin Nasser told Reuters in a statement after Aramco reported a 25 percent jump in net profit in its first quarter mainly on the back of higher sales.
The world's top oil exporter posted a net profit of $32.5 billion in the three months ending on March 31, beating an estimate of $30.95 billion. Total revenue reached 11.4 percent from the previous quarter to $115.49 billion.
Global energy supplies have been sharply squeezed by Iran’s blockade of the Strait of Hormuz, which has curtailed shipping and driven prices higher following the US-Israeli war.
"Reopening routes is not the same as normalizing a market that has been deprived of about one billion barrels of oil," Nasser said, adding that years of underinvestment have compounded the strain on already-low global inventories.
Nasser had previously warned of "catastrophic consequences" if the strait remains shut the longer the conflict persists.
Aramco has used its East-West Pipeline to bypass Hormuz and transport crude to the Red Sea, an asset Nasser described as a "critical lifeline" to mitigate the global supply crisis.
He said this pipeline has been instrumental in mitigating the impact of a global energy shock and providing relief to customers affected by the ongoing conflict.
Despite shifts in shipping routes, Nasser reiterated that Asia remained a key priority for the company and was central to global demand.
