Aramco CEO warns of dangerously low global oil stockpiles

The global oil supply buffer has become alarmingly thin, according to Amin Nasser, CEO of Saudi Aramco. He warned that markets remain vulnerable to supply shocks unless the Strait of Hormuz fully reopens. His comments came days after major economies announced plans to release up to 100 million barrels of emergency oil stocks to ease rising fuel costs.

Nasser highlighted that global oil stockpiles have dropped from about 10 billion barrels to less than 6 billion since the US-Iran war began. Only 10% of the remaining stockpiles are practically available due to various technical restrictions. He cautioned that releasing more reserves would only provide temporary relief and not address the underlying supply-demand imbalances.

Despite efforts by Gulf producers to ramp up production and exports, oil markets continue to factor in security risks in the Persian Gulf and Red Sea. Brent crude has traded around $100 a barrel recently, even as more tankers have transited Hormuz. Aramco has maintained its upstream capacity and adjusted export routes to supply customers, but the company is exploring alternative crude export routes to reduce reliance on any single method.

Nasser also mentioned plans to double or triple the capacity of Aramco's storage facilities. The company has faced challenges, including a temporary halt to its main cross-country pipeline due to an attack last month, but has since restored flows to about 80% of capacity.