Shell executives: Iran conflict causes oil supply gap, the world is currently overdrawn on future production capacity.

Shell CEO Ben van Beurden said that global oil supply is at risk of being overdrawn in the face of supply disruptions caused by the conflict in Iran. The conflict has been ongoing for over three months, and its long-term impacts cannot be ignored. The London-based oil giant executive said on Wednesday that the conflict, combined with Irans blockade of the Strait of Hormuz, has resulted in a shortfall of 1.2 billion barrels of oil supply, and it may take a year for the market supply and demand to rebalance. Beurden said, "Now is not the time to continue increasing reserves, so they must be able to flexibly control demand, mainly relying on existing reserves and stocks. Globally, inventory consumption is currently the main buffer. However, fundamentally, the risk of this practice is that we are overstretching future supply."