Aramco CEO Warns of Rising Oil Market Risks Amid Low Stockpiles and Hormuz Disruptions

Saudi Aramco CEO Amin Nasser has warned of rising risks in the global oil market due to critically low stockpiles and ongoing disruptions in the Strait of Hormuz. Speaking at the Energy Intelligence Forum in London, Nasser highlighted that emergency releases of strategic petroleum reserves by major economies can only offer temporary relief and won't address the underlying supply-demand imbalances.

Nasser described current oil inventories as "scarily thin," emphasizing that pressure on both crude oil and refined fuel markets will persist until normal shipping through the Strait of Hormuz resumes. The critical waterway has faced disruptions since the outbreak of conflict following US and Israeli attacks on Iran earlier this year. Despite efforts by Gulf producers to restore exports, geopolitical and security risks in the Persian Gulf and Red Sea remain significant factors in the market.

Nasser noted that rebuilding depleted inventories could take up to two years even after the Strait of Hormuz fully reopens. Meanwhile, Saudi Arabia, the UAE, and Kuwait have increased their reliance on their own tanker fleets to move crude through the waterway. Saudi Aramco has also boosted exports from its Ras Tanura terminal and restored flows on its East-West pipeline to about 80% of capacity after a recent attack temporarily disrupted operations.

Despite higher export volumes, the international oil benchmark Brent crude has traded around the $100-per-barrel mark over the past month, reflecting concerns over potential supply interruptions.