Saudi Aramco CEO Amin Nasser has warned that global oil inventories are at worryingly low levels, with the disruption around the Strait of Hormuz creating further pressure on oil and refined product markets.
Nasser made the comments at the Energy Intelligence Forum in London on Monday. He said global stockpiles are extremely thin and that rebuilding inventories could take up to two years even after the Strait of Hormuz fully reopens.
Aramco Says Oil Inventories Have Limited Usable Supply
Nasser said nearly 3 billion barrels of supply have been lost since the US and Israel attacked Iran in February, with the conflict partly affecting the Strait of Hormuz.
He also said less than 10% of oil inventories are actually usable, while the remainder consists of pipeline fill, minimum tank levels and operational reserves. Aramco said oil demand is recovering and that the global market will need at least 2 million barrels per day (bpd) of additional oil demand over the next 18 months to draw down current inventories.
Nasser said Aramco continues to export crude through Yanbu, Sidi Kerir and Port Said and is exploring alternative export routes and expanding international storage.
Hormuz Disruption Keeps Pressure on Oil Markets
Nasser warned that supply pressure could become more severe if the Strait of Hormuz does not fully reopen. He said refined products could face even greater price pressure than crude oil.
He also said Brent crude could reach $200 per barrel without east-west pipelines, while noting that physical crude prices can trade $20-$50 per barrel above Brent. Aramco said it has sufficient inventories to supply customers.
Major economies have announced plans to release up to 100 million barrels of emergency crude and diesel reserves. G7 leaders agreed to release the stocks over four months, with diesel releases brought forward.
Global Oil Stocks Could Take Years to Rebuild
The International Energy Agency said members have released 325 million of the 400 million barrels pledged. Japan’s Chief Cabinet Secretary Minoru Kihara said Tokyo has no plans for another reserve release after using its stocks in March and May.
Middle Eastern crude exports rose above pre-war levels on four days in late September, according to Reuters, although attacks threatening Gulf energy infrastructure have continued to keep oil prices elevated.
Nasser said that if current conditions normalise, crude oil demand should remain stable for the next two years. He added that global inventories would still need replenishment.
Q1. What did Aramco CEO Amin Nasser say about global oil inventories?
Amin Nasser said global oil inventories are worryingly low and that rebuilding them could take up to two years.
Q2. How much oil supply has been lost, according to Nasser?
Nasser said nearly 3 billion barrels of supply have been lost since the US and Israel attacked Iran in February.
Q3. How much of global oil inventories are actually usable?
Nasser said less than 10% of oil inventories are actually usable, with the rest consisting of pipeline fill, minimum tank levels and operational reserves.
Q4. How much additional oil demand will the world need?
Nasser said the world will need at least 2 million barrels per day of additional oil demand over the next 18 months to draw down current inventories.
Q5. How long could it take to replenish global oil inventories?
Nasser said replenishing global inventories could take up to two years even after the Strait of Hormuz fully reopens.
