Aramco CEO Warns of Severe Global Oil Inventory Shortage

Saudi Aramco CEO Amin Nasser warned that less than 10% of the world's oil inventories are currently accessible, raising concerns about worsening crude and refined fuel supplies. Speaking at the Energy Intelligence Forum in London, Nasser noted that out of nearly 10 billion barrels of oil in global stocks, less than 6 billion barrels remain practically available. Over 1 billion barrels have already been used to offset lost supplies, primarily from onshore commercial inventories.

Governments in major economies have announced plans to release up to 100 million barrels of emergency oil and diesel stocks to alleviate market pressure. However, Nasser cautioned that these reserves would only provide temporary relief and would not address the underlying supply-demand imbalance. He emphasized that until the Strait of Hormuz is fully reopened and market confidence is restored, pressure on both crude and refined fuel prices will intensify.

Nasser estimated that replenishing global inventories while meeting current demand could take up to two years, even after the Strait of Hormuz reopens. He stated that the world needs at least 2 million barrels per day of extra demand to refill current inventories over the next 18 months. Despite the challenges, he expressed optimism that crude oil demand could remain stable over the next two years if conditions normalize.

Aramco has been exploring alternative export routes and overseas storage facilities to reduce its dependence on the Strait of Hormuz. The company has increased crude shipments from its main export terminal at Ras Tanura and restored flows on its East-West pipeline to about 80% of capacity. Nasser also mentioned that Aramco could make 12 million barrels per day available within days if required.