Saudi Aramco CEO warns of critically low global oil stockpiles

Amin Nasser, the CEO of Saudi Aramco, warned that global oil stockpiles are dangerously low due to the ongoing Middle East conflict. The seven-month war has slashed oil supply from the region by nearly three billion barrels, roughly half of what typically flows through the Strait of Hormuz. To offset the shortfall, over one billion barrels have been drawn from reserves, including 300 million barrels released by governments. Nasser emphasized that most reserves used come from companies, which he called 'the last major tool in the box.'

Speaking at the Energy Intelligence Forum in London, Nasser noted that commercial inventories have dropped to less than six billion barrels, with the majority not practically available. He described the supply resilience cushion as 'scarily thin,' highlighting the strain on the global oil market. The conflict has also led to attacks on infrastructure and tankers, with modern technology like satellite imagery and shipping logs being 'weaponized against infrastructure and tankers.'

Despite shipments from Gulf countries rising to 15.5 million barrels a day last month, the highest since the war began, oil markets remain tight. Prices for North Sea crude cargoes have surged to their highest levels since April. Nasser predicted that replenishing inventories while meeting demand could take up to two years and urged governments to prioritize energy security and resilience. Aramco is exploring additional export routes and overseas storage facilities to mitigate future disruptions.