Aramco Warns of Dangerously Low Global Oil Stockpiles

Amin Nasser, CEO of Saudi Aramco, warned at the Energy Intelligence Forum in London on Oct. 5 that global oil stockpiles have dropped to alarmingly low levels. He emphasized that this situation raises concerns about the stability of the oil market, particularly if shipping through the Strait of Hormuz remains disrupted. According to Nasser, the current imbalance between supply and demand could worsen, with refined fuel prices rising even more sharply than crude oil prices.

On Oct. 2, G7 countries announced plans to release up to 100 million barrels of oil and diesel from strategic reserves to ease price pressures. Nasser acknowledged that this measure would provide temporary relief but would not resolve the underlying supply-demand imbalance. He estimated that it could take up to two years to replenish the depleted reserves, even after normal shipping through the Strait of Hormuz resumes.

Aramco has managed to maintain stable oil supplies during the Middle East conflict by leveraging overseas storage and quickly repairing damaged infrastructure. The company is exploring alternative export routes and additional storage options to reduce its reliance on any single shipping lane. Nasser affirmed that Aramco can rapidly increase production to its maximum sustainable level of 12 million barrels per day if needed.

Meanwhile, the Houthi movement claimed responsibility for attacks on two Saudi Aramco facilities, vowing to continue targeting military and oil infrastructure in Saudi Arabia. Saudi Arabia has reported a significant decline in oil production in August, citing the escalating conflict between the U.S. and Iran as a contributing factor. On Oct. 4, OPEC+ countries decided to maintain their current oil production targets for November.