Global oil stocks are alarmingly low and could take two years to rebuild, Aramco warns
The CEO of the world's biggest oil company warned at a conference that the global oil supply system is reaching its limit and that replenishing global oil stockpiles could take two years.
Saudi Aramco's CEO Amin Nasser has warned that the world's oil supply cushion is rapidly dwindling, potentially taking up to two years to rebuild. The ongoing Iran war has significantly drained oil stocks that were meant to offset supply disruptions. The closure of the Strait of Hormuz, a narrow waterway responsible for around 20% of global oil and liquefied natural gas supplies, has led to major disruptions and price hikes, impacting the global economy.
Seven months into the war, the global oil stockpile system is already facing severe strain, as explained by Nasser at the Energy Intelligence Forum in London. G7 countries, collaborating with the International Energy Agency (IEA), agreed to release 100 million barrels of diesel and crude oil to alleviate global energy supply concerns triggered by the US-Iran conflict.
However, Nasser cautioned against relying on headline figures for commercial reserves, noting that only less than 10% are actually available for use. Roughly half of the crude and refined products that typically pass through the Strait of Hormuz during this period have been lost. While these reserves may help the world through one winter, they do not provide a lasting solution, as rebuilding inventories could take up to two years.
Written by urgent.news from Euronews Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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