Aramco CEO Warns: Global Oil Stocks at Concerning Levels
Saudi Aramco CEO Amin Nasser warned that global oil stocks have reached “alarmingly tight” levels, noting that rebuilding reserves depleted during the Middle East conflict could take up to two years.
Nasser stated that the seven-month war between the United States, Israel, and Iran resulted in the loss of approximately 3 billion barrels of oil supplies in the region, equivalent to nearly half of the crude oil and refined products that would have normally transited the Strait of Hormuz during that period.
He added that more than one billion barrels were drawn from oil reserves to mitigate the impact of supply shortages, while governments released over 300 million barrels from strategic stockpiles, with agreements in place to inject additional volumes. However, he emphasized that the bulk of compensatory supplies came from corporate inventories, which he described as the “last major tool available” to support the market.
In his first public appearance since the outbreak of the war, Nasser, speaking at the “Energy Intelligence Forum” in London, said that remaining global commercial stocks are currently below 6 billion barrels, clarifying that most of these volumes are not practically available for immediate use. He added that “the global energy system is already under strain,” warning that the margin of safety for ensuring supply continuity has become extremely limited given the few options left for markets.
The Aramco CEO pointed out that modern technologies, including satellite imagery and open-source ship movement databases, are increasingly being used to target energy infrastructure and oil tankers. He noted that recent weeks have seen attacks on ships transiting the Strait of Hormuz, as well as strikes on Aramco-owned pipelines, refineries, and ports, stressing that “transparency tools should not turn into tools of aggression.”
Nasser’s remarks reflect the significant pressure on global energy markets due to supply disruptions, despite a gradual improvement in oil flows through Gulf shipping routes. According to data from Kpler, Gulf exports rose to 15.5 million barrels per day last month, the highest level since the conflict began, representing more than 80% of pre-crisis levels.
Despite this relative recovery, Nasser stressed that the market continues to face tight supplies and rising transportation costs, as spot prices for North Sea crude surged to their highest levels since April. He added that replenishing stockpiles while meeting global demand could take up to two years even after the conflict ends, urging governments to prioritize energy security and enhance supply chain resilience.
Nasser revealed that Aramco is exploring additional routes for exporting Saudi crude, alongside expanding storage facilities outside the kingdom, aiming to bolster supply reliability and protect customers from potential disruptions in global energy markets.
