Global Oil Inventories Are Alarmingly Low, Aramco Warns
Amin Nasser said less than 10% of commercial reserves are available for use and rebuilding inventories could take up to two years.
- Saudi Aramco Chief Executive Amin Nasser warned on Monday that global oil supply reserves are "scarily thin," telling the Energy Intelligence Forum in London that stockpiles are "already straining."
- The seven-month war between the US, Iran, and Israel has disrupted the Strait of Hormuz, which typically handles around 20% of global oil supplies, forcing producers to seek alternative export routes.
- Nasser estimated nearly 3 billion barrels of supply have been lost, leaving less than 6 billion barrels in commercial inventories, with "less than 10%" of those reserves actually available for use.
- G7 countries and the International Energy Agency agreed on Friday to release 100 million barrels of diesel and crude oil, while Aramco simultaneously repaired damaged infrastructure to maintain customer requirements.
- Rebuilding depleted global inventories could take up to two years after the conflict ends, according to Nasser, who emphasized that tapping current reserves does not fix long-term supply imbalances.
13 Articles
13 Articles
Global oil reserves have fallen to alarming levels and could take up to two years to recover, even if traffic through the Strait of Hormuz is fully normalized, Amin Nasser, the chief executive of Saudi Aramco, warned. Speaking at the Energy Intelligence Forum in London on Monday, Nasser said the global oil supply system is approaching its limits, after months of disruptions caused by the war in Iran and the near-complete closure of the Strait of…
The world oil market faces an increasingly delicate situation after months of tensions in the Middle East caused by the United States and Israel. Faced with this, governments have already had to turn to their reserves to ease pressure; the problem now is that with ever-lower reserves, the concern is what would happen if a new supply disruption occurs. Over the past few months, energy markets have re-remembered to what extent we continue to depen…
Restoring global oil supplies could take up to two years, even after the key Strait of Hormuz is fully opened.
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