Aramco CEO Warns Replenishing Oil Stocks May Take Two Years

The world’s largest oil company, Saudi Aramco, predicts that replenishing global crude and fuel stocks could take up to two years. Amin Nasser, the CEO of Aramco, made this statement at the Energy Intelligence Forum in London on Monday. He noted that the supply squeeze has intensified since Iran closed the Strait of Hormuz in February, a critical shipping route.

Nasser revealed that nearly 3 billion barrels of oil supply have been lost since the start of the US-Israeli war on Iran. While 1 billion barrels have been released from global stocks, refilling all inventories would require an additional 2 million barrels per day of demand over the next 18 months. Global daily oil demand currently stands at just over 100 million barrels.

Saudi Arabia’s maximum sustainable production capacity of 12 million barrels per day could be made available within days, according to Nasser. However, much of the remaining 6 billion barrels in storage is not practically available, as up to 90% is in pipelines or needed to maintain storage tank operations.

Aramco is exploring new export routes to bypass the Strait of Hormuz. The company’s East-West pipeline, which allows oil to move to Red Sea terminals, has been crucial in preventing further supply disruptions. Without this pipeline, Brent crude futures could have hit $200 per barrel. On Monday, Brent futures traded around $102 per barrel, down from a high of $126 per barrel in late April.