Aramco CEO warns replenishing oil stocks could take two years

Amin Nasser, CEO of Saudi Aramco, warned that global oil and fuel stockpiles depleted during the Iran conflict may take up to two years to replenish. Speaking at the Energy Intelligence Forum in London, Nasser emphasized that the strain on crude oil and refined fuels will persist until the Strait of Hormuz fully reopens and confidence in supplies is restored. He noted that nearly 3 billion barrels of oil supply have been lost since the conflict began, while 1 billion barrels have been released from global stocks.

Nasser highlighted that Saudi Arabia’s maximum sustainable production capacity of 12 million barrels per day (bpd) could be activated quickly, thanks to its strategic reserves and flexible systems. However, he cautioned that much of the remaining 6 billion barrels in storage is impractical to access, as up to 90% is either in pipelines or required to maintain storage operations. Brent crude futures, which peaked at $126 per barrel in April, have since fallen to around $102 per barrel.

Aramco is exploring alternative export routes to bypass the Strait of Hormuz, including expanding the East-West pipeline and utilizing overseas storage. Nasser stated that without the pipeline, oil prices could have surged to $200 per barrel. He also mentioned ongoing efforts to meet customer demands and develop additional export routes to mitigate risks from chokepoints.