2 hrs ago
Aramco CEO Warns Thin Oil Stocks Raise Market Risks
Oil supplies stored around the world have become very low.
These stored supplies usually help when something interrupts oil deliveries.
Saudi Aramco chief Amin Nasser said releasing emergency reserves can help for a short time, but it does not fix the larger supply problem.
He said oil and fuel markets may remain under pressure until ships can travel normally through the Strait of Hormuz.
Even after the route fully reopens, it could take up to two years to rebuild inventories.
Gulf countries have increased their oil shipments, but concerns about conflict and security remain.
Brent oil has traded around $100 a barrel over the past month.
Saudi Aramco CEO Amin Nasser said global oil inventories have fallen to unusually low levels.
He said emergency reserve releases may ease prices temporarily but will not fix underlying supply-demand imbalances.
Nasser said pressure on crude and refined fuel markets could persist until confidence returns and Hormuz shipping normalizes.
He estimated rebuilding depleted inventories could take up to two years after the Strait of Hormuz fully reopens.
Gulf producers have increased exports, while Brent crude has traded near $100 per barrel amid ongoing supply concerns.
- Who
- Amin Nasser, chief executive of Saudi Aramco.
- What
- He warned that low global oil inventories leave markets vulnerable and said restoring stocks could take up to two years.
- Where
- At the Energy Intelligence Forum in London; the supply concerns involve the Strait of Hormuz and the Persian Gulf.
- When
- Monday; the article does not give a calendar date.
- Why
- Disruptions to shipping through the Strait of Hormuz and depleted inventories have increased the risk of further supply interruptions.
Emergency Reserves Provide Relief
Underlying Supply Risks Remain
Effect of reserve releases
Emergency Reserves Provide Relief
Major economies’ planned release of up to 100 million barrels of oil and diesel reserves may help contain rising fuel prices in the short term.
Underlying Supply Risks Remain
Nasser said releases would not resolve underlying supply-demand imbalances or rebuild depleted inventories.
Export recovery versus market exposure
Emergency Reserves Provide Relief
Gulf producers have raised crude shipments toward pre-conflict levels, and Saudi Aramco has boosted exports from Ras Tanura and restored East-West pipeline flows to about 80% of capacity.
Underlying Supply Risks Remain
Nasser said oil and refined-fuel markets would remain under pressure until confidence returns and Hormuz shipping normalizes; the article also notes continuing geopolitical and security risks.
Key facts
- Speaker
- Amin Nasser, Saudi Aramco chief executive
- Event
- Energy Intelligence Forum
- Event location
- London
- Emergency reserves
- Major economies announced plans to release up to 100 million barrels of oil and diesel reserves.
- Inventory recovery estimate
- Up to two years after the Strait of Hormuz fully reopens
- Brent price
- Around $100 per barrel over the past month
- East-West pipeline
- Flows restored to about 80% of capacity after a recent attack temporarily disrupted operations.
Quotes
Amin Nasser
Chief executive of Saudi Aramco
“Oil inventories that normally cushion markets against shocks have become scarily thin”
thehansindia.com
Sources
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