Oil inventories could take 2 years to replenish, warns Aramco
What's the story
Saudi Aramco's CEO Amin Nasser has warned that it might take as long as two years to replenish global oil inventories. The warning comes amid a potential worsening of the supply squeeze due to the ongoing US-Iran conflict. Nasser revealed that nearly three billion barrels of oil supply have been lost since the war started in late February, with around one billion barrels drawn from stocks.
Strategic impact
Nasser's comments on barrel pressure
Speaking at the Energy Intelligence conference in London, Nasser said supply pressure will increase until the strategically vital Strait of Hormuz fully reopens and confidence returns to energy markets.
The strait is a narrow waterway that usually carries some 20% of the world's oil and liquefied natural gas supplies. Its disruption has sent shock waves through the global economy.
Emergency measures
G7 agrees to release emergency reserves
In response to the ongoing crisis, G7 governments have agreed to release 100 million barrels of diesel and crude from emergency reserves. The decision came after pressure from US President Donald Trump.
However, even with these measures, Nasser warned that replenishing inventories while meeting demand could take up to two years.
He stressed that the system is already straining under these circumstances.