Aramco chief says global oil inventories are critically low after Middle East war
Saudi Aramco CEO Amin Nasser told the Energy Intelligence Forum in London that the conflict involving the United States, Israel and Iran has removed roughly three billion barrels of oil from the market. More than one billion barrels have been taken from commercial reserves, leaving under six billion barrels of usable stock worldwide. He warned that rebuilding these supplies could require up to two years and said the company is looking at new export pathways and overseas storage to improve resilience.
Why it matters
The shortage means tighter physical markets and higher spot prices, which could affect traders’ cost of carry and margin calculations. Aramco’s plan to mobilise its full 12 million bpd sustainable capacity and to develop alternative routes may influence supply dynamics and shipping patterns, according to the CEO’s statements.
Key facts
- 1The war has cut oil supply by nearly three billion barrels, about half of the volume that normally passes the Strait of Hormuz. irishtimes.com
- 2More than one billion barrels have been drawn from commercial reserves to offset the shortfall. irishtimes.com
- 3Less than six billion barrels of commercial inventories remain, most of which are not readily accessible. oilprice.com
- 4Rebuilding inventories could take up to two years even after the Strait of Hormuz fully reopens. oilprice.com
- 5Aramco can make its full 12 million barrels per day sustainable production capacity available within days. oilprice.com
- 6The company is studying additional crude export routes and overseas storage facilities to reduce reliance on single shipping corridors. oilprice.com
Summary written by AlphAI from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.