Aramco CEO warns oil market could lose 100M barrels weekly if Strait of Hormuz remains closed

Saudi Aramco CEO Amin Nasser has warned that the closure of the Strait of Hormuz, a critical waterway for global oil supply, could result in a loss of approximately 100 million barrels of oil from global markets each week. The cumulative loss has already neared 1 billion barrels. Nasser projects that if disruptions persist, oil markets might not stabilize until 2027. The situation is exacerbated by the fact that most of the world's spare oil production capacity is located in the Persian Gulf. While efforts like rerouting shipments and using strategic reserves offer some relief, they come with increased costs and limitations. Despite the market turmoil, Aramco reported a 26% profit increase in Q1 due to higher prices. The article also touches on the potential impact on crypto markets, suggesting that while crypto could be seen as an inflation hedge, a severe energy crisis might lead to a broader risk-off sentiment affecting all asset classes, including Bitcoin. Furthermore, rising energy costs could impact Bitcoin mining profitability, potentially forcing less efficient operations offline and causing volatility.

(Source：Crypto Briefing)