Aramco CEO Warns of Scarily Thin Global Oil Stockpiles

Saudi Aramco CEO Amin Nasser has warned that global oil stockpiles have reached dangerously low levels due to prolonged conflict in the Middle East. Speaking at the Energy Intelligence Forum in London, Nasser stated that nearly 3 billion barrels of oil supplies have been lost since the seven-month conflict involving the U.S., Israel, and Iran began. He emphasized that replenishing these depleted inventories could take up to two years, even after the fighting ends, as the global supply resilience has become "scarily thin."

Over 1 billion barrels of oil have been drawn from reserves to compensate for the supply shortfall, with governments contributing 300 million barrels from strategic reserves. The remaining oil has come from company-held inventories, which Nasser described as the last available tool. He noted that less than 6 billion barrels of commercial inventories remain globally, with most of these not practically accessible. Nasser also cautioned against relying on headline reserve figures, as less than 10% of reported stocks are actually available.

The G7 countries, in collaboration with the International Energy Agency, agreed to release 100 million barrels of diesel and crude oil to alleviate global energy supply concerns. Despite a recent increase in Gulf oil flows to 15.5 million barrels a day, the market remains tight, with prices for North Sea crude cargoes reaching their highest levels since April. Nasser called for greater emphasis on energy security and supply resilience, urging governments to explore alternative export routes and storage facilities to protect against future disruptions.

Nasser also highlighted the growing use of modern technology, such as satellite imagery and shipping logs, to target energy infrastructure and tankers. Recent attacks on ships in the Strait of Hormuz and on Aramco facilities in Iraq and Yemen have underscored these risks. He warned that tools of transparency should not be used as ammunition for aggression. Nasser’s remarks marked his first public speech since the war began.