Saudi Aramco chief executive Amin Nasser warned on Monday that replenishing the world's depleted oil stockpiles could take as long as two years, even after flows through the Strait of Hormuz normalise, describing the remaining global supply cushion as "scarily thin".
Speaking at the Energy Intelligence Forum in London, Nasser said the world had entered the crisis with almost 10 billion barrels of oil stocks, but the Middle East conflict has wiped out nearly 3 billion barrels of gross oil supply — roughly half the crude and refined products that would normally have moved through Hormuz over the same period.
Stocks drawn down sharply
More than 1 billion barrels have been drawn from stocks to offset the shortfall, mostly from onshore commercial inventories, according to Nasser. He estimated that less than 6 billion barrels of commercial inventories remain, with most of those barrels "not practically available" — leaving the global supply buffer dangerously thin.
"Until Hormuz fully re-opens and confidence returns, the crude reality is that pressure at both ends of the barrel will intensify," Nasser said. "Even then, replenishing inventories while meeting demand could take up to two years."
The comments come days after the Group of Seven countries agreed to a coordinated release of 100 million barrels over four months through the International Energy Agency, including a front-loaded diesel release. Gulf producers have worked to ramp up production and exports to near pre-war levels, but Brent crude has continued to trade around $100 a barrel as security risks in the Persian Gulf and Red Sea keep markets on edge.
Sources:
Reuters: Replenishing crude, fuel supplies could take two years, Saudi Aramco CEO says
NDTV Profit: Global Oil Supply Buffer Running 'Scarily Thin,' Aramco CEO Says
Wall Street Journal: Aramco CEO Says Oil Inventories Could Take Two Years to Rebuild
Speaking at the Energy Intelligence Forum in London, Nasser said the world had entered the crisis with almost 10 billion barrels of oil stocks, but the Middle East conflict has wiped out nearly 3 billion barrels of gross oil supply — roughly half the crude and refined products that would normally have moved through Hormuz over the same period.
Stocks drawn down sharply
More than 1 billion barrels have been drawn from stocks to offset the shortfall, mostly from onshore commercial inventories, according to Nasser. He estimated that less than 6 billion barrels of commercial inventories remain, with most of those barrels "not practically available" — leaving the global supply buffer dangerously thin.
"Until Hormuz fully re-opens and confidence returns, the crude reality is that pressure at both ends of the barrel will intensify," Nasser said. "Even then, replenishing inventories while meeting demand could take up to two years."
The comments come days after the Group of Seven countries agreed to a coordinated release of 100 million barrels over four months through the International Energy Agency, including a front-loaded diesel release. Gulf producers have worked to ramp up production and exports to near pre-war levels, but Brent crude has continued to trade around $100 a barrel as security risks in the Persian Gulf and Red Sea keep markets on edge.
Sources:
Reuters: Replenishing crude, fuel supplies could take two years, Saudi Aramco CEO says
NDTV Profit: Global Oil Supply Buffer Running 'Scarily Thin,' Aramco CEO Says
Wall Street Journal: Aramco CEO Says Oil Inventories Could Take Two Years to Rebuild
