World Has Depleted Its Oil Reserve Stock
Oil officials warn of supply shortages and price pressures as governments and energy companies withdraw from commercial reserves that have reached critical levels.
Translated by Qiyas from الجريدة — Original source
Executive officials in the oil sector said at a forum held in London this week that oil stocks available to the global market are dwindling, making the market more vulnerable to supply shortages and driving upward pressure on prices.
Governments and energy companies have drawn down oil from reserves to ease pressure on the global crude market, which has faced unprecedented supply disruptions this year due to the wars in the Middle East and Ukraine.
Amin Nasser, chief executive of state-owned Saudi Aramco, said at the Energy Intelligence forum in London, “Today, less than six billion barrels of commercial stocks remain, and the vast majority of them are practically unavailable, so the system is already under severe stress.”
Nasser reported that more than one billion barrels of oil had been drawn down, mostly from onshore commercial stocks, since the outbreak of the Middle East crisis earlier this year. Reserves had been the last major tool available.
The International Energy Agency (IEA), the Western body tasked with monitoring the oil market and coordinating strategic reserves, is preparing to release 100 million barrels of crude oil and diesel to help alleviate rising diesel prices, but it remains unclear whether part of this total will include quantities from the first standard release of 400 million barrels in March that has not yet reached the market.
Nasser said about the IEA’s decision, “It took a lot of negotiation, but the figure is 100 million barrels.”
He added, “Stocks are reaching a critical level. Only 10 percent or less is available, which is why they are struggling to provide 100 million barrels.”
