Aramco CEO warns ‘squeeze on crude oil is serious’
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- Aramco CEO Amin Nasser warned that global crude oil supply pressures will intensify unless the Strait of Hormuz fully reopens.
- He said commercial oil inventories have fallen below six billion barrels, with most stocks not readily available, and rebuilding inventories while meeting demand could take up to two years.
Saudi Aramco CEO Amin Nasser has warned that pressure on global oil supplies will intensify unless the Strait of Hormuz fully reopens, highlighting dwindling inventories and rising refined fuel prices.
Speaking at the WPC Energy Congress in Riyadh on Monday, Nasser said the global crude oil supply situation was serious, while prices for refined fuels had risen even more sharply.
“Until Hormuz fully re-opens and confidence returns, the crude reality is that pressure at both ends of the barrel will intensify,” Nasser said, referring to crude oil and refined petroleum products.
Nasser said commercial oil inventories had fallen below six billion barrels, with the vast majority not practically available to the market.
The shrinking reserves have reduced the global energy market’s ability to absorb further supply disruptions, leaving countries and companies with fewer options to offset shortages.
According to Nasser, the world entered the current crisis with almost 10 billion barrels in global oil stocks. Since then, nearly three billion barrels of gross oil supply have been lost, while more than one billion barrels have been drawn from inventories to help offset the shortfall.
Nasser warned that replenishing global inventories while continuing to meet demand could take up to two years, even after the Strait of Hormuz fully reopens.
The strait is a critical route for global energy shipments, and its prolonged disruption has constrained oil flows and contributed to a wider energy supply shock.
The warning comes as energy industry leaders raise concerns about the limited availability of emergency supplies and the potential for continued pressure on fuel prices if disruptions persist.
