Global Oil Inventory Warning
Saudi Aramco CEO warns global oil stockpiles could take two years to rebuild.
Anonymous
Key Points
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Nasser put the scale of the disruption at nearly 3 billion barrels of lost oil supply since U.S. and Israeli strikes on Iran began in late February, while about 1 billion barrels had been drawn from stocks.
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The G7 agreed to release 100 million barrels of crude and diesel from emergency reserves; the move followed pressure from U.S. President Donald Trump.
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Nasser described global inventories as “scarily thin” and said constraints affect refined products as well as crude, with fuel prices seeing larger increases.
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Saudi Aramco’s East-West pipeline had recovered to about 80% of capacity after a temporary shutdown following an attack, allowing the company to route more crude through the Red Sea; Aramco is also considering alternative export routes and more overseas storage.
Saudi Aramco CEO Amin Nasser warned that global oil inventories could take up to two years to rebuild after the Middle East conflict drained supplies and disrupted shipping through the Strait of Hormuz. According to Market Screener, nearly 3 billion barrels of oil have been lost since U.S. and Israeli strikes on Iran began in late February, while about 1 billion barrels have been drawn from emergency stocks.
Nasser described global inventories as "scarily thin" and said the disruption affects both crude oil and refined fuel. The G7 has agreed to release 100 million barrels from emergency reserves, but Market Screener reports this offers only temporary relief as much stored oil is not easily accessible.
The Scale of Supply Losses Across the Gulf
The conflict has created a massive supply gap in global oil markets. Nasser said nearly 3 billion barrels of oil supply have been lost since late February, according to Market Screener. About 1 billion barrels were drawn from storage to cover the shortage. These figures show how severely the region's disruption has rippled through global energy supplies.
Why Emergency Reserve Releases Fall Short
The G7 agreed to release 100 million barrels of crude and diesel from emergency reserves after pressure from President Trump. But Market Screener reports this move provides only temporary relief. Nasser warned that much of the oil in storage is not readily accessible for quick release, limiting how much can actually reach markets.
Fuel prices have risen more sharply than crude prices because refined products face tighter constraints. Global inventories are stretched thin across both crude and finished fuels, making the recovery period longer than a simple refill would suggest.
Saudi Aramco's Efforts to Restore Pipeline Routes
Saudi Aramco has recovered its East-West pipeline to about 80% of capacity after a temporary shutdown following an attack on the system. According to Market Screener, this recovery allows the company to route more crude through the Red Sea instead of relying solely on the Strait of Hormuz. The company is also exploring alternative export routes and additional overseas storage facilities.
A Two-Year Wait for Inventory Recovery
Even with increased Gulf producer exports and restored pipeline capacity, Nasser made clear that full recovery will take years. Market Screener reports that the Strait of Hormuz must fully reopen and global confidence must recover before inventories return to normal levels. Until then, supply pressures will persist and limit how quickly prices can stabilize.
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