Aramco Warns Oil Stockpile Rebuilding Could Take Two Years
Global oil inventories have plummeted to dangerously low levels, with nearly a billion barrels drawn down to compensate for supply disruptions caused by the Middle East conflict. Saudi Aramco's CEO, Amin Nasser, warned that rebuilding these stockpiles while meeting normal demand could take up to two years, extending into 2028.
Speaking at the Energy Intelligence Forum in London, Nasser highlighted the intensifying pressure on both crude and refined products, with fuel prices rising faster than raw crude. He noted that the Strait of Hormuz remains a critical bottleneck, and even its full reopening may not immediately relieve market tensions. Nearly 3 billion barrels of supply have been lost since the conflict began, with over 1 billion barrels already released from reserves.
Most of the emergency releases came from commercial inventories, leaving roughly 6 billion barrels in storage largely inaccessible. Nasser described commercial stockpiles as "the last major tool in the box," emphasizing the strain on the system. While the Group of Seven nations have agreed to release additional strategic petroleum reserves, Nasser cautioned that these moves would only provide temporary relief.
Gulf producers have responded by raising output and shifting logistics, with Saudi Arabia, the UAE, and Kuwait deploying their own tankers. Aramco has boosted shipments from its Ras Tanura export terminal and restored flows on its East-West pipeline to 80% of capacity. The company is also exploring alternative export routes and additional overseas storage to reduce reliance on any single supply route.
The market implications are significant, with Brent crude holding around $100 a barrel for the past month. The prolonged disruption has forced reliance on commercial stocks, which are normally managed for efficiency rather than resilience. Rebuilding these buffers will compete directly with current demand, extending the period of vulnerability and suggesting elevated fuel costs could linger even after geopolitical tensions ease.