SupplyFriday, 29 May 2026·India
ADNOC official says global energy and chemical supply chains may need months to stabilize
Global chemical and energy supply chains may require several months to fully recover even if the Strait of Hormuz resumes normal operations, according to comments from a senior ADNOC executive amid ongoing Middle East disruptions.
Rainer Seele, who oversees chemicals operations at ADNOC’s investment platform XRG, said the regional conflict has created significant congestion and delays across international oil, gas, and petrochemical markets, resulting in a large supply backlog.
He explained that recovery could remain slow because many countries are expected to focus first on rebuilding strategic energy reserves before normal trade flows are completely restored. This could delay the normalization process for crude oil, LNG, and chemical supply chains even after shipping conditions improve.
The Strait of Hormuz, one of the world’s most important energy transit routes, has faced major operational disruption during the recent conflict, contributing to sharp increases in global energy prices over the past few weeks.
Despite current volatility, Seele believes oil prices could gradually decline once geopolitical tensions ease. According to him, the market still contains a significant geopolitical risk premium linked to uncertainty in the Middle East.
He added that crude prices may eventually return closer to the $80 per barrel range, similar to levels seen before the conflict escalated. At the same time, improving sentiment around ongoing US-Iran negotiations has already started pressuring energy markets, with both crude oil and natural gas prices retreating from recent highs.
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Rainer Seele, who oversees chemicals operations at ADNOC’s investment platform XRG, said the regional conflict has created significant congestion and delays across international oil, gas, and petrochemical markets, resulting in a large supply backlog.
He explained that recovery could remain slow because many countries are expected to focus first on rebuilding strategic energy reserves before normal trade flows are completely restored. This could delay the normalization process for crude oil, LNG, and chemical supply chains even after shipping conditions improve.
The Strait of Hormuz, one of the world’s most important energy transit routes, has faced major operational disruption during the recent conflict, contributing to sharp increases in global energy prices over the past few weeks.
Despite current volatility, Seele believes oil prices could gradually decline once geopolitical tensions ease. According to him, the market still contains a significant geopolitical risk premium linked to uncertainty in the Middle East.
He added that crude prices may eventually return closer to the $80 per barrel range, similar to levels seen before the conflict escalated. At the same time, improving sentiment around ongoing US-Iran negotiations has already started pressuring energy markets, with both crude oil and natural gas prices retreating from recent highs.
Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211.