Saudi Aramco CEO Nasser says the company can reach its maximum sustainable oil production capacity of 12mln bpd within three weeks if needed
- Even if the Strait of Hormuz reopens today, it would still take months for the oil market to rebalance.
- The energy shock that began in Q1 is the largest the world has seen.
- If the Hormuz disruption continues for several more weeks, oil market normalisation may not occur until 2027.
- Aramco CEO says the company produced 12.6mln barrels of oil equivalent per day in Q1.
Context
Saudi Aramco's CEO indicates that the company could ramp up to its maximum sustainable oil production capacity of 12 million barrels per day in just three weeks if necessary, which may temper immediate supply concerns. However, the broader context highlights that even with a quick return to production, any meaningful normalization in the oil market could still be years away due to prolonged disruption in the Strait of Hormuz. This statement will likely influence market sentiment on oil prices, especially in relation to WTI and global supply dynamics.
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