Aramco CEO: "It Could Take Up to Two Years to Replenish Global Oil Inventories"

Remarks at UK Energy Event
"The system is already under pressure"

Saudi Aramco, the world’s largest oil company, has warned that it could take up to two years to replenish global crude oil inventories depleted by the war between the United States and Iran. The company cautioned that if the conflict is prolonged and normalization of the Strait of Hormuz is delayed, the oil supply shortage could worsen further.

Amin Nasser, CEO of Aramco, attending an event held in Houston, Texas, USA in 2024. Photo by AFP.

According to CNBC and other outlets on October 5 (local time), Amin Nasser, CEO of Aramco, said at the Energy Intelligence Conference in London that day, "Supply pressures will only intensify until the Strait of Hormuz is fully reopened and confidence in energy markets is restored," adding, "Even after that, it could take up to two years to replenish inventories while meeting demand."

The Strait of Hormuz is a critical energy corridor, through which about 20% of the world's oil and liquefied natural gas (LNG) supply typically passes. Since the outbreak of war between the United States and Iran, vessel traffic has been disrupted, shaking up international oil supply chains as well.

CEO Nasser stated that since the United States and Israel attacked Iran at the end of February, approximately 3 billion barrels of oil supply have disappeared, and about 1 billion barrels have been drawn from inventories to fill this gap.

He explained that most of the inventory decline so far has come from commercial stockpiles and stressed that the approximately 6 billion barrels of oil still stored worldwide are "not realistically available for immediate use." He added, "The system is already under pressure."

These comments came shortly after the Group of Seven (G7) nations agreed on October 2 to release 100 million barrels of diesel and crude oil from their emergency reserves. As prolonged conflict in the Middle East amplifies instability in oil and fuel supplies, the release of joint stockpiles is intended to stabilize the market.

Tensions in the Strait of Hormuz remain high. According to the United Kingdom Maritime Trade Operations (UKMTO), an oil tanker passing through the strait that day was warned by Iran's Islamic Revolutionary Guard Corps (IRGC) that it could be attacked if it did not turn back, prompting the vessel to alter its course.

However, there are signs that oil exports from the Middle East are partially recovering. As shipments via the Strait of Hormuz and Saudi Arabia’s East-West pipeline have increased, international crude oil prices showed mixed trends on this day.

The December Brent crude oil contract rose 0.7% to $102.92 a barrel, while November West Texas Intermediate (WTI) crude fell 0.4% to $90.76 a barrel.

This content was produced with the assistance of AI translation services.