Saudi Aramco CEO Warns of Rising Oil Market Risks as Inventories Dwindle

Global oil stockpiles have dropped to dangerously low levels, raising concerns about energy market stability. Saudi Aramco CEO Amin Nasser warned that without a full reopening of the Strait of Hormuz, markets remain vulnerable to supply disruptions. Speaking at the Energy Intelligence Forum in London, Nasser noted that emergency releases of strategic petroleum reserves by major economies offer only temporary relief.

Nasser emphasized that current oil inventories, which typically act as a buffer against shocks, are alarmingly thin. He predicted that rebuilding these depleted reserves could take up to two years, even after the Strait of Hormuz fully reopens. The critical shipping route has faced disruptions since the conflict between the US, Israel, and Iran earlier this year.

Despite efforts by Gulf producers to restore exports, concerns over geopolitical risks persist. Saudi Arabia, the UAE, and Kuwait have increased the use of their own tanker fleets to move crude through the waterway. Saudi Aramco has also boosted exports from its Ras Tanura terminal and restored flows on its East-West pipeline to 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 ongoing fears of potential supply interruptions. Nasser’s comments came days after major economies announced plans to release up to 100 million barrels of emergency oil and diesel reserves to curb rising fuel prices.