Aramco CEO Warns of Rising Oil Market Risks as Inventories Dwindle

Global oil markets are facing heightened risks due to dangerously low stockpiles, according to Saudi Aramco CEO Amin Nasser. Speaking at the Energy Intelligence Forum in London on Monday, Nasser warned that inventories have shrunk to levels that leave markets exposed to supply disruptions. He emphasized that emergency releases of strategic petroleum reserves by major economies can only provide temporary relief and will not address the fundamental supply-demand imbalances.

The situation is particularly critical given the ongoing disruptions in the Strait of Hormuz, a vital shipping route for global energy trade. The strait has been affected by conflict following US and Israeli attacks on Iran earlier this year. Nasser highlighted that pressure on both crude oil and refined fuel markets will persist until confidence is restored and shipping through Hormuz normalizes.

Despite efforts by Gulf producers to restore exports, including increased reliance on their own tanker fleets, geopolitical risks remain a significant concern. Saudi Aramco has boosted exports from its Ras Tanura terminal and restored flows on its East-West pipeline to about 80% of capacity after a recent attack. However, Brent crude has traded around $100 per barrel, reflecting ongoing worries about potential supply interruptions.

Rebuilding depleted inventories could take up to two years, even after the Strait of Hormuz fully reopens, according to Nasser. His comments come days after major economies announced plans to release up to 100 million barrels of emergency oil and diesel reserves to curb rising fuel prices.