Iran war causes ‘oil disaster’ in the world! Big warning from Saudi Aramco, crude oil crossed 120 dollars

Saudi Aramco CEO Warning: Amidst the ongoing fierce conflict in the Middle East, the world’s largest oil company Saudi Aramco has issued a scary warning regarding the global economy. On Tuesday, Aramco Chief Executive Officer (CEO) Amin Nasser said that if the ongoing war between America, Israel and Iran prolongs, it will have a ‘devastating effect’ on the global oil market. May fall.

Oil reserves at 5 year low

According to Amin Nasir, due to the war and the supply problems created by it, oil reserves around the world have reached their lowest level in the last five years. He warned that if oil supply disruptions continue due to the current geopolitical crisis, reserves will decline further. Due to this, not only the oil market but the entire global economy may suffer huge losses.

Crisis on Gulf of Hormuz increases

The Aramco chief stressed the strategic importance of the Strait of Hormuz, saying that a large part of the global oil and natural gas passes through this route. After the attacks on Iran, Tehran has decided to close this gulf, which has disrupted the energy supply across the world. Generally, about 20 percent of the world’s oil and liquefied natural gas (LNG) is supplied through this route.

huge decline in production

Oil production in the Gulf countries has been badly affected due to the war. Saudi Aramco has reduced production at two of its key fields and is exploring alternative routes for exports, such as the Yanbu port, which are not sufficient to compensate for Hormuz. Iraq’s oil production has fallen by 70 percent, while Qatar Energy has halted LNG production at its Ras Laffan center. Countries such as Kuwait, Qatar, Iraq and Bahrain have imposed ‘force majeure’ restrictions on oil shipments, citing extraordinary circumstances. Has been declared.

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Oil becomes most expensive after 2022

Due to all these crises, oil prices are skyrocketing in the global market. This week, the price of global benchmark Brent crude has reached almost $ 120 per barrel, which is the highest level since 2022. Experts believe that if the conflict continues, fuel prices may remain high for a long time.