Saudi Aramco Warns of Dangerously Low Global Oil Stockpiles

Global oil stockpiles have dropped to dangerously low levels, according to Amin Nasser, CEO of Saudi Aramco. Speaking at the Energy Intelligence Forum in London on October 5, Nasser warned that the situation could worsen if the Strait of Hormuz remains closed to unrestricted shipping. He noted that crude oil supply pressures are severe, while refined fuel prices have surged even higher.

Earlier in the week, the G7 countries announced plans to release up to 100 million barrels of oil and diesel from strategic reserves to curb rising prices. However, Nasser emphasized that this measure would only provide temporary relief and would not resolve the underlying supply-demand imbalance. He predicted that even after the Strait of Hormuz reopens, it could take up to two years for countries to rebuild their reserves.

Aramco has managed to maintain stable oil supplies amid the Middle East conflict by utilizing foreign storage and quickly repairing damaged infrastructure. The company is exploring alternative export routes and additional storage options to reduce reliance on any single shipping route. Nasser assured that Aramco can rapidly reach its maximum production capacity of 12 million barrels per day if needed.

Meanwhile, Houthi representative Yahya Saree claimed responsibility for recent attacks on Saudi Aramco facilities using missiles and drones, threatening further strikes. Saudi Arabia had previously reported a significant drop in oil production in August due to the escalating conflict between the U.S. and Iran, which limited its export capacity. On October 4, OPEC+ countries decided to maintain their current oil production targets for November.