Aramco CEO Warns of Dangerously Thin Global Oil Stockpiles

The world's oil supply buffer has dwindled to alarmingly low levels, according to Amin Nasser, CEO of Saudi Aramco. Speaking at the Energy Intelligence Forum in London, Nasser warned that global oil stockpiles have shrunk from about 10 billion barrels to less than 6 billion, with only 10% of that amount practically available due to technical restrictions.

Nasser emphasized that the Strait of Hormuz, a critical choke point for oil shipments, must fully reopen to ease market pressures. He noted that while crude oil prices are under strain, refined fuel prices have surged even higher. The ongoing U.S.-Iran war has disrupted supply chains, forcing Gulf producers like Saudi Arabia, the United Arab Emirates, and Kuwait to use their own tankers to navigate the obstructed strait.

Despite efforts to boost production and exports, oil markets remain volatile, with Brent crude trading around $100 per barrel. Aramco has managed to keep its upstream capacity intact, adapting by shifting supply routes and grades, and even pressing its own tankers into service. The company is exploring alternative export routes and plans to double or triple its storage capacity to mitigate risks.

Nasser acknowledged that releasing emergency oil stocks from the world’s largest economies could provide temporary relief but would not resolve the fundamental supply-demand imbalance. He predicted that global demand for crude could rise by at least 2 million barrels per day over the next two years as countries rebuild their inventories.