Global oil buffers run low
Saudi Aramco CEO Warns Global Oil Buffers Are Dangerously Depleted
Anonymous
Key Points
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Nasser said most of the more than 1 billion barrels already drawn from reserves came from company-held stocks, not government strategic reserves; governments had released more than 300 million barrels and agreed to release additional volumes.
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Nasser warned that satellite imagery and shipping logs are increasingly being used to target energy infrastructure and tankers, saying, “Tools of transparency should not become ammunition for aggression.”
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Governments in major economies had announced plans to release as much as 100 million barrels of emergency oil and diesel stocks to ease rising fuel costs, according to Bloomberg.
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A separate account said global inventories were nearly 10 billion barrels when the crisis began and that emergency reserves might help the world get through winter but would not address longer-term supply problems.
Saudi Aramco CEO Amin Nasser warned that global oil inventories have hit a critical breaking point after seven months of US-Israel-Iran conflict disrupted nearly 3 billion barrels of regional supply. More than 1 billion barrels have been pulled from reserves worldwide, leaving less than 6 billion barrels in commercial storage—much of it difficult to access. Investing.com reported that Nasser said restocking could take up to two years.
The oil industry faces a perfect storm: shrinking buffers, targeted infrastructure, and recovering-but-fragile Gulf shipments. Strategic reserve releases from governments have helped cushion the shock, but the margin for error has vanished. Energy markets now sit vulnerable to any new disruption in the Strait of Hormuz or regional attacks.
More Than a Billion Barrels Already Gone
The draw-down on global oil reserves has been steep. Investing.com reported that Nasser said most of the 1 billion barrels pulled came from company-held stocks—not government strategic reserves. Governments separately released more than 300 million barrels and pledged to release additional volumes to ease pressure on fuel prices.
Before the crisis, global inventories stood near 10 billion barrels, according to separate accounts cited by NDTV Profit. Emergency reserves may help economies survive the winter months, but they won't solve the deeper, long-term supply gap that now stretches ahead.
Satellite Data Weaponized Against Oil Infrastructure
Nasser raised an alarm about how transparency tools are being weaponized. Satellite imagery and shipping logs are increasingly used to target energy infrastructure and tanker ships. He stated plainly: "Tools of transparency should not become ammunition for aggression," highlighting how real-time data meant to track markets now aids attackers.
This threat multiplies the vulnerability of the already-strained supply chain. Tankers moving crude through contested waters face mounting risk, and critical infrastructure in the Gulf remains under intermittent fire.
G7 Plans Emergency Releases as Strait Recovers Slowly
Major economies have announced plans to release up to 100 million barrels of emergency oil and diesel stocks, Investing.com reported. The effort aims to cap fuel costs and avoid demand shocks. Yet these one-time injections buy only temporary relief.
Gulf shipments through the Strait of Hormuz—the world's most critical oil chokepoint—have partially recovered after months of disruption. NDTV Profit noted that markets remain at risk unless the strait stays open. Any fresh attack or blockade could unravel the fragile supply balance within days.
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