Aramco sees ‘catastrophic consequences’ for oil markets if Hormuz strait remains blocked

Aramco sees ‘catastrophic consequences’ for oil markets if Hormuz strait remains blocked

Reuters reports:

Saudi Arabia’s Aramco, the world’s top oil exporter, said on Tuesday there would be “catastrophic consequences” for the world’s oil ​markets if the Iran war continues to disrupt shipping in the Strait of Hormuz.

Oil shipments have been largely blocked from using the shipping artery, where normally ‌roughly 20% of the world’s oil would pass through daily. Iran’s Revolutionary Guards said on Tuesday they would not allow “one litre of oil” to be shipped from the Middle East if U.S. and Israeli attacks continue.

“There would be catastrophic consequences for the world’s oil markets and the longer the disruption goes on … the more drastic the consequences for the global economy,” Aramco CEO Amin Nasser told reporters on an earnings call.

“While ​we have faced disruptions in the past, this one by far is the biggest crisis the region’s oil and gas industry has faced.” [Continue reading…]

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