Aramco warns of dangerously thin global oil supply cushion

The world's oil supply buffer has reached dangerously low levels, according to Saudi oil giant Aramco. During a speech at the Energy Intelligence Forum in London on Monday, Aramco CEO Amin Nasser warned that tapping into reserves can only offer short-term relief and will not resolve long-term supply challenges. He emphasized that until the Strait of Hormuz fully reopens and confidence is restored, the pressure on global oil and gas markets will continue to grow.

The Strait of Hormuz, a critical energy chokepoint, remains closed indefinitely, causing global oil and gas prices to surge. Nasser noted that around 30% of the world's oil stocks have been depleted since the U.S. and Israel began their war with Iran in February. He described the world's oil 'supply resilience cushion' as 'scarily thin.'

Nasser stated that releasing supplies from reserves will only provide temporary support and 'cannot fix' the underlying supply issues. The ongoing crisis in the Middle East has exacerbated the situation, leaving global oil stockpiles alarmingly low.