Saudi Aramco CEO: oil inventories at stress level with only 10% available

Global oil storage accessible to the market has plummeted to critically low levels, intensifying market fragility and driving prices upward, according to industry leaders at a London forum. Saudi Aramco CEO Amin Nasser revealed that available commercial inventories have dwindled to a mere 10%, insufficient to cushion the system from stress.

Less than 6 billion barrels of commercial inventories remain, with the majority of the stock not readily accessible. Governments and energy firms have been depleting their reserves throughout the year to alleviate pressure on the global oil market, grappling with supply disruptions stemming from conflicts in the Middle East and Ukraine.

More than a billion barrels of oil have been extracted, primarily from onshore commercial inventories since the onset of the Middle East crisis. The International Energy Agency (IEA), responsible for coordinating strategic oil reserves for Western nations, is set to release an additional 100 million barrels of crude and diesel to tackle escalating diesel prices.

It remains uncertain whether a portion of this volume will comprise remnants from the record 400 million barrel release in March that have yet to enter the market. Nasser acknowledged the substantial global demand for oil, which stands at approximately 102 million barrels per day, as cited by the IEA. He emphasized the challenge of building additional inventories, stating that only 10% or less of the inventory is currently accessible.