Saudi Aramco Warns of Dangerously Low Global Oil Inventories

Saudi Aramco CEO Amin Nasser warned that global oil inventories are critically low, a situation that could take up to two years to resolve. Speaking at the Energy Intelligence Forum in London, Nasser highlighted that nearly 3 billion barrels of oil supply have been lost since the conflict involving the U.S., Israel, and Iran began in February. Over 1 billion barrels have already been drawn from inventories to mitigate the impact, but rebuilding these stocks while meeting current demand would require an additional 2 million barrels per day for 18 months.

Despite supply routes in the Middle East recovering to about 98% of pre-war levels, Nasser emphasized that the buffer protecting the market from disruptions has been significantly depleted. He noted that less than 6 billion barrels of commercial inventory remain globally, but only a fraction of that is practically accessible. Reuters reported that roughly 10% of these stocks may be usable during another disruption, meaning the total inventory figures overstate the actual available supply.

The G7 recently announced a release of 100 million barrels of crude and diesel from emergency reserves, but Nasser cautioned that such releases offer only temporary relief. Oil prices continue to reflect this tightness, with Brent trading around $102.30 per barrel and WTI near $90.62. The higher prices are already affecting import-dependent economies, reviving inflation pressures and pushing the market toward another $120 scenario.