ADNOC Executive: Oil Demand to Surge After Supply Crisis Overcomes

 Oil Tankers 

She said that replenishing inventories will support demand recovery and a return to normal price levels.

Fatima bin Salim Al Tunaiji, an official at the Abu Dhabi National Oil Company (ADNOC), said that oil demand will see a significant increase to replenish inventories after the current global supply crisis is overcome.

Speaking at the S&P Global Energy Middle East Oil & Gas Conference in London, she added that oil demand will begin to recover as oil prices return to normal levels. The crisis led to the biggest energy supply shock in history, causing prices to spike and raising fears of an economic recession.

Approximately 20% of the world's oil and liquefied natural gas supplies passed through the Strait of Hormuz before Iran effectively closed it following the start of the US-Israeli war on February 28.

Official: August Could Be a Turning Point for Oil Prices

An executive at Abu Dhabi National Oil Company (ADNOC) said on Tuesday that August could be a turning point towards a significant rise in oil prices if demand increases and the supply crisis stemming from the Iran war persists. He indicated that it could take a full year for energy supply chains to recover, even after flows return to normal.

Philip Khoury, ADNOC's executive vice president of sales and trading, added during the Middle East Oil and Gas Conference in London that transit through the Strait of Hormuz will remain below pre-war levels as long as uncertainty surrounding peace continues.

"Things won't go back to normal overnight," he continued, noting that some elements of the supply chain will need weeks to recover, while others will take months. A full return to pre-war levels could take until mid-2027, according to Reuters.