Replenishing crude and fuel stocks could take two years, Saudi Aramco CEO says
- Saudi Aramco CEO Amin Nasser warned at the Energy Intelligence conference in London on Monday that global oil inventories may take two years to rebuild amid severe supply strain.
- Nearly 3 billion barrels of oil supply have been lost since military strikes in Iran began in February, disrupting shipping through the Strait of Hormuz, which handles around 20% of global supplies.
- Most of the 1 billion barrels released from stocks came from commercial inventories, Nasser said, while the remaining 6 billion in storage are "not practically available" to ease pressure.
- Following pressure from President Donald Trump, governments including France, Canada, Germany, Italy, Japan, and the United Kingdom agreed on Friday to release 100 million barrels of diesel and crude from emergency reserves.
- Oil prices traded marginally lower on Monday as Middle East exports rose, though pressure at both ends of the barrel will intensify until the Strait of Hormuz fully reopens.
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"The system is already under pressure," said Amin Nasser during the Energy Intelligence Forum conference, organized in London. "And as there are very few alternatives to which the world can resort, the safety buffer that allows to cope with supply interruptions is dangerously low," he added. The head of the world's largest oil producer also warned that the "gross figures" of reserves should not be observed, as "less than 10% is actually availabl…
Replenishing crude and fuel stocks could take two years, Saudi Aramco CEO says
LONDON, Oct 5 (Reuters) - The squeeze on crude oil and refined fuels is set to tighten, and it could take up to two years to refill global stockpiles drawn on as an emergency measure, the chief executive of the world's biggest oil company Saudi Aramco said on Monday.
World's Biggest Oil Giant Warns Global Stockpiles Are 'Scarily Thin' and Could Take Two Years to Rebuild
Saudi Aramco CEO Amin Nasser says oil inventories are 'scarily thin' after Middle East disruptions, with restocking potentially taking two years as Hormuz remains critical.
Amin Nasser sees the energy markets as a result of the Iran war and the blocked road of Hormus under pressure. In order to fill up the reserves, the head of Saudi Aramco is testing new export routes.
The restoration of oil trade from the Gulf countries is a welcome early, although it has reached almost pre-war levels, and the significantly reduced world oil reserves are a matter of concern, as reported by Bloomberg, the CEO of Saudi Arabia's largest agency today made such a statement.
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