Aramco CEO Warns of Dangerously Thin Global Oil Supplies

Saudi Aramco CEO Amin Nasser warned that global oil stockpiles have dropped to dangerously low levels, leaving markets vulnerable to further supply disruptions until the Strait of Hormuz fully reopens. Speaking at the Energy Intelligence Forum in London, Nasser emphasized that the current situation creates intense pressure on both crude oil and refined fuel prices, with refined fuels seeing even sharper price increases. He noted that global oil consumption continues to grow, requiring additional supplies for at least the next two years to replenish depleted inventories, potentially adding 2 million barrels per day to demand.

Nasser highlighted that global oil stocks have plummeted from about 10 billion barrels at the start of the US-Iran conflict to below 6 billion barrels, with only 10% of the remaining stocks practically accessible due to technical restrictions. While releasing some of these reserves could provide temporary relief, it would not resolve the fundamental supply-demand imbalance. Gulf producers, including Saudi Arabia, the UAE, and Kuwait, are ramping up production and exports, with Saudi Arabia restarting crude and refined-product loadings through the East-West Pipeline after its recent reopening.

Nasser cautioned that without the full reopening of the Strait of Hormuz and restored confidence in supply stability, the pressure on oil markets will persist. The Strait has been partially obstructed since late February when the US and Israel attacked Iran. Kpler estimates that the Yanbu crude and refined-product loadings have reached 2.65 million barrels per day, with a full return to pre-conflict levels of about 5.5 million barrels per day expected within another month.