Africa’s oil giants are preparing for potential impacts and opportunities from even greater oil gains as Aramco warns of a 100 million barrel weekly loss if the Strait of Hormuz stays closed.
The African oil industry, which has benefited from price increases following Russia's invasion of Ukraine, is now confronted with fresh challenges and opportunities as the disruption of the Strait of Hormuz continues, prompting efforts to address supply gaps ahead of a market reset.
Saudi Aramco’s CEO, Amin Nasser, warned that "the oil market will lose 100 million barrels of supply every week the strait remains closed," as only a fraction of the usual vessels are able to pass through daily.
According to the him, the market has already lost more than 1 billion barrels due to the closure, with around 880 million barrels redirected through Aramco’s east-west pipeline and strategic reserves released by governments.
Nonetheless, with global oil inventories depleting rapidly, African oil producers like Nigeria, Angola, and Algeria are stepping in, ready to capitalize on opportunities as the market shifts.
