According to Saudi Aramco's Musaab Al Mulla, what evidence shows underinvestment in oil refining, and what impact has it had on the current oil supply crisis?

Musaab Al Mulla, Saudi Aramco's vice president of market analysis and sustainability, stated that around 3 million barrels per day of refining capacity closed between 2020 and 2023, demonstrating underinvestment in oil refining — a shortfall now exacerbating the current oil supply crisis. He emphasized that 'if you have those refineries you may have definitely mitigated the impacts of the crisis today,' directly linking the lack of refining infrastructure to heightened vulnerability during supply disruptions. This conclusion was presented at the S&P Global Energy Middle East Petroleum and Gas Conference in London.

What major geopolitical events does the news cite as causes of the recent loss of oil supply from Middle East producers?

The news cites three interconnected geopolitical developments: the war in Iran, attacks on energy infrastructure, and Iran's effective closure of the Strait of Hormuz — followed by a U.S. naval blockade — which together removed approximately 14 million barrels per day of oil supply from Middle East producers to the global market.

Oil refining has been underinvested, Saudi Aramco says

Jun 3, 2026

Saudi Aramco warns underinvestment in oil refining worsened the supply crisis, citing 3 million barrels per day capacity closures since 2020, compounded by geopolitical conflicts removing 14 million bpd from Middle East supply.

reuters

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