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News Saudia > Business > Aramco CEO Warns Global Oil Supply Buffer Has Grown Scarily Thin
Business

Aramco CEO Warns Global Oil Supply Buffer Has Grown Scarily Thin

NewsDesk
Last updated: October 5, 2026 6:46 pm
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Saudi Aramco Chief Executive Amin Nasser told the Energy Intelligence Forum in London on October 5 that the oil stockpiles cushioning the world from supply shocks have become scarily thin, with commercial inventories dropping from nearly 10 billion barrels at the start of the crisis to less than 6 billion today. Nasser said more than 1 billion barrels have already been drawn from those stocks to offset nearly 3 billion barrels of lost supply since the conflict began in late February, according to a Bloomberg report on his remarks. The Aramco CEO added that most of the remaining volume is not practically available due to technical restrictions, leaving less than 10 percent accessible as an immediate buffer.

The International Energy Agency’s August 2026 Oil Market Report showed observed global stocks had already fallen below 7.9 billion barrels by the end of July, with cumulative draws reaching 410 million barrels over the prior five months. Nasser noted that governments in major economies have since announced plans to release up to 100 million barrels of emergency oil and diesel through coordinated action with the IEA, a step that may provide temporary relief. Yet the executive stated such moves will not resolve underlying imbalances between supply and demand while the Strait of Hormuz remains constrained.

Nasser highlighted that the lost supply equates to roughly half the crude and refined products that would normally transit the strategic waterway, which handles about one-fifth of global oil and LNG shipments. Bloomberg reporting on the London forum quoted him describing commercial inventories as the last major tool available to markets. The CEO cautioned that the system is already straining under these conditions.

Replenishing inventories while still meeting ongoing demand could take as long as two years even after full reopening of the Strait of Hormuz, Nasser said in his address. He projected that countries will require at least an additional 2 million barrels per day for the next 18 months simply to rebuild stocks, with the figure potentially rising further if governments opt to increase their reserves. The Aramco chief called for greater cooperation between producers and consumers on emergency responses and joint stockpiling initiatives.

Gulf producers have responded by increasing exports through alternative routes, with Aramco utilizing its East-West Pipeline to bypass the disrupted strait and expanding storage capacity where possible. Nasser told the forum that his company continues to meet customer requirements through multiple lines, terminals and existing inventories despite the challenges. Reuters coverage of the event noted that renewed vessel attacks around Hormuz since late September have threatened recent gains in regional crude shipments.

Nasser’s comments mark his first major public address since the conflict escalated, underscoring persistent risks to energy security more than seven months after initial strikes on Iran. The IEA has separately reported that Middle East crude exports have recovered somewhat but refined-product flows remain severely limited. Nasser urged prioritization of resilience measures to avoid deeper market strains in the months ahead.

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ByNewsDesk
News Saudia NewsDesk is the desk responsible for News Saudia's daily news coverage, monitoring and reporting developments across the Gulf from official sources, including national news agencies and government communications. Its focus is accurate, timely and factual coverage of the region.
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