Global oil inventories have fallen to dangerously low levels following the seven-month Middle East conflict, according to Saudi Aramco chief executive Amin Nasser.
Nasser said the conflict involving the US, Israel and Iran had reduced regional oil supplies by “nearly 3bn barrels”, while more than 1bn barrels had been drawn from reserves to cushion the shortfall.
He estimated that “less than 6bn barrels of commercial inventories remain today, with the vast majority not practically available”.
“The system is already straining,” Nasser told the Energy Intelligence Forum in London. “And with precious little else the world can turn to, the supply resilience cushion is scarily thin.”
Gulf shipments have recovered to 15.5mn barrels a day, more than 80% of pre-conflict volumes, but oil markets remain tight and physical North Sea crude prices have risen to their highest levels since April.
Nasser warned that even after the conflict ends, “replenishing inventories while meeting demand could take up to two years”, and called for greater focus on energy security and resilience.
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