Replenishing crude, fuel supplies could take two years: Saudi Aramco CEO

Saudi Arabia's state oil producer, Saudi Aramco, chief executive Amin Nasser warned that it could take up to two years to replenish crude and fuel supplies. He pointed out that oil stockpiles have become "scarily thin" and markets are at risk of worsening until the Strait of Hormuz reopens. Nasser stated that while governments are releasing emergency oil and diesel stocks, refined fuel prices have risen even more sharply.

He added that consumption of crude is still increasing, and countries will need more supply for at least the next two years. The world had around 10 billion barrels of oil stocks before the US-Iran war began, which has now fallen to less than 6 billion barrels. However, only about 10% of that stock is practically available due to technical restrictions.

Nasser emphasized that releasing part of the remaining global stockpiles will only provide temporary relief and won't resolve the underlying supply-demand imbalances. Gulf producers are working to increase production and exports, but the higher flows have not significantly alleviated oil market concerns. Brent crude has been trading around US$100 a barrel, despite more tankers transiting Hormuz, which has been partly obstructed since the US and Israel attacked Iran in late February.