Aramco CEO Warns of Critically Low Global Oil Inventories
Saudi Aramco CEO Amin Nasser issued a stark warning about global oil supplies, noting that nearly 3 billion barrels of crude have been lost since the Iran war began. This loss is equivalent to half the oil normally transported through the Strait of Hormuz, leaving global inventories at alarmingly low levels.
Nasser revealed that the world started the crisis with around 10 billion barrels of oil stocks, but over 1 billion barrels have been depleted to compensate for supply disruptions. This has reduced commercial inventories to less than 6 billion barrels, with most of the remaining stocks not readily available. Nasser described the situation as 'scarily thin' and emphasized that the system is already under strain.
The Aramco CEO also highlighted the importance of Saudi Arabia's East-West pipeline, which bypasses the Strait of Hormuz. Without this pipeline, Brent crude could have surged to $200 per barrel. Flows through the pipeline have been restored to 80% of capacity after an attack last month. Nasser cautioned that replenishing inventories and meeting global demand could take up to two years, even after the Strait of Hormuz fully reopens.
His comments follow the G7's decision to release up to 100 million barrels of emergency oil and diesel stocks over the next four months. However, Nasser stressed that these emergency reserves can only provide temporary relief and cannot solve long-term supply issues. Aramco is now exploring additional export routes and overseas storage to reduce its reliance on key shipping corridors.