Saudi Aramco Chief Executive Amin Nasser said on Monday that nearly 3 billion barrels of oil supply had been lost, equivalent to around half of the crude and petroleum products normally transported through the Strait of Hormuz.
He said maritime shipping had been severely disrupted and supply chains were under intense pressure.
Aramco is exploring additional routes for crude oil exports, as well as expanding overseas storage facilities, to help mitigate short-term disruptions, Nasser said.
He added that the world entered the crisis with oil inventories equivalent to around 10 billion barrels. More than 1 billion barrels of that supply has since been used to ease shortages, most of it from onshore commercial inventories, which he described as the last major source of supply available.
Less than 6 billion barrels of commercial inventories now remain, Nasser said, adding that most of this volume is not practically available.
He warned that pressure on oil and refined products would intensify until the Strait of Hormuz is fully reopened and market confidence returns.
Emergency reserves may be sufficient to cover the winter, Nasser said, but they do not resolve the longer-term supply problem. Replenishing inventories while simultaneously meeting demand could take as long as two years, he added.
