According to Shell CEO Wael Sawan, how long will it take to restore equilibrium in the crude oil market, and what key factor explains this timeline?

Shell CEO Wael Sawan stated that restoring a balanced crude oil market will take 'close to a year, if not longer' due to a current deficit of 1.2 billion barrels of crude and the fact that over 10% of global crude oil production is offline because of the Iran war. He emphasized that while inventory drawdowns are temporarily supporting the market, they represent 'borrowing from the future', and stress levels will persist 'for quite some time' until equilibrium is re-established.

What role do Chinese energy imports and inventories play in the current global crude oil market imbalance, per Shell's CEO?

According to Shell CEO Wael Sawan, Chinese energy imports have declined because China is drawing down its existing inventories — a factor contributing to the temporary relief in global market pressure. However, he stressed that this drawdown is unsustainable, calling it 'borrowing from the future', and noted that the underlying structural deficit of 1.2 billion barrels remains unaddressed, prolonging the path to market equilibrium.

Restoring crude oil market equilibrium will take a year if not longer, Shell CEO says

Jun 10, 2026

Shell CEO Wael Sawan predicts crude oil market equilibrium may take over a year due to a 1.2 billion barrel deficit and geopolitical disruptions. He warned that inventory drawdowns are temporary and market stress will persist until supply stabilizes.

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