Aramco CEO warns of dangerously low global oil stockpiles

Saudi Aramco CEO Amin Nasser warned that global oil stockpiles are dangerously low, raising concerns about market stability. Speaking at the Energy Intelligence Forum in London on Monday, Nasser emphasized that the current situation could worsen unless the Strait of Hormuz reopens fully. The remarks came days after major economies announced plans to release up to 100 million barrels of emergency oil and diesel stocks to combat rising fuel costs.

Nasser stated that while releasing stockpiles offers temporary relief, it does not address the underlying supply-demand imbalances. He predicted that even after Hormuz reopens, it could take up to two years for energy-consuming countries to replenish their stockpiles. Despite efforts by Gulf producers to boost production and exports, oil markets remain volatile due to security risks in the Persian Gulf and Red Sea.

Brent crude, the international benchmark, has hovered around $100 per barrel over the past month, despite increased tanker traffic through Hormuz. Saudi Arabia has played a key role in boosting crude shipments, particularly from its main export terminal at Ras Tanura. The company quickly recovered from a recent attack on its main cross-country pipeline, restoring flows to about 80% of capacity.

Aramco is exploring alternative export routes and additional international storage facilities to reduce reliance on any single method of reaching global buyers. Nasser did not address reports of recent attacks on the kingdom in his speech, but highlighted the company's resilience through the conflict by utilizing international storage and repairing damaged infrastructure.