Saudi Aramco CEO Warns of Rising Oil Market Risks Amid Hormuz Disruptions

Saudi Aramco CEO Amin Nasser has warned that global oil markets are facing heightened risks due to critically low stockpiles and ongoing disruptions in the Strait of Hormuz. Speaking at the Energy Intelligence Forum in London, Nasser highlighted that emergency releases of strategic petroleum reserves by major economies may offer temporary relief but won't address the fundamental supply-demand imbalances.

Nasser emphasized that oil inventories, which typically act as a buffer against market shocks, have become alarmingly thin. He cautioned that pressure on both crude oil and refined fuel markets will persist until shipping through the Strait of Hormuz normalizes. The critical waterway has experienced disruptions since the conflict in the region escalated earlier this year following US and Israeli attacks on Iran.

Despite efforts by Gulf producers to restore exports, geopolitical and security risks in the Persian Gulf and Red Sea continue to weigh on oil markets. Saudi Arabia, the UAE, and Kuwait have increased the use of their own tanker fleets to move crude through the Strait of Hormuz. Saudi Aramco has also boosted exports from its Ras Tanura terminal and restored flows on its East-West pipeline to about 80% of capacity after a recent attack.

International oil benchmark Brent crude has traded around the $100-per-barrel mark over the past month, reflecting concerns over potential supply interruptions. Rebuilding depleted inventories could take as long as two years, even after the Strait of Hormuz fully reopens, according to Nasser.