Aramco CEO: Restoring global oil stocks could take two years

• Aramco CEO Amin Nasser says rebuilding global oil inventories could take up to two years once the Strait of Hormuz fully reopens.
• He says nearly three billion barrels of oil supply have been lost since the conflict began, while about one billion barrels have been drawn from global inventories.

Saudi Aramco CEO Amin Nasser warned Monday that shortages of crude oil and refined fuels could worsen, saying it may take up to two years to rebuild global oil inventories that have been drawn down during the conflict.

Speaking at the Energy Intelligence conference in London, Nasser said the full reopening of the Strait of Hormuz and a restoration of confidence in shipping would be necessary to ease pressure on global oil markets.

“Until the Strait of Hormuz is fully reopened and confidence returns, the harsh reality is that pressure is building on both sides of the oil equation,” Nasser said.

“Even if that happens, rebuilding inventories while meeting demand at the same time could take up to two years,” he added.

Nasser said nearly three billion barrels of oil supply had been lost since the conflict began, while about one billion barrels had been withdrawn from global inventories.

The Aramco chief said the situation was being compounded by the fact that most inventory withdrawals so far had come from commercial stocks.

He estimated that around six billion barrels remain in storage globally, but said much of that volume is “practically unavailable.”

Nasser’s comments highlight the potential for continued pressure on global energy markets even if disruptions to oil flows through the Strait of Hormuz ease, as producers and consumers would need to replenish depleted inventories while continuing to meet ongoing demand.