Saudi Aramco chief warns world oil reserves are “frighteningly low”
In short
The head of Saudi Aramco, Amin Nasser, said at a London energy forum that world oil reserves that cushion supply disruptions have fallen to a “frighteningly low” level, and that pressure on crude and refined product markets will grow until the Strait of Hormuz is fully open to shipping. He said the G7 decision to release up to 100 million barrels from strategic reserves will buy time but not fix the supply-demand imbalance, and that replenishing reserves could take up to two years.
Read the full story 2 min read
The head of Saudi state oil company Saudi Aramco, Amin Nasser, said world oil reserves that cushion supply disruptions have fallen to a “frighteningly low” level, Interfax and Vedomosti reported. Speaking at the Energy Intelligence forum in London, Nasser said this creates a risk of further deterioration on the oil market while the Strait of Hormuz is not open to unimpeded shipping, according to RBC. [ 1 , 2 , 6 ]
“Until the Strait of Hormuz fully opens and market confidence is restored, the harsh reality is that pressure on both the oil and the oil product markets will intensify,” Nasser said, according to Interfax and Vedomosti. He added that prices for oil products have risen more than crude prices. [ 1 , 2 ]
On the G7 response, the documents differ in detail. Interfax reported that G7 countries decided on Friday to release up to 100 million barrels of oil and diesel from strategic reserves to contain price growth. Vedomosti reported that French President Emmanuel Macron said on October 2 that the G7 would release up to 100 million barrels of oil and petroleum products over the next four months to lower fuel prices, primarily diesel, and that the group also agreed to make production more flexible so refineries could run at maximum capacity. Nasser said the release would buy some time but would not remove the imbalance between supply and demand, and that even after shipping through the strait resumes, states could need up to two years to restore their reserves. [ 1 , 2 , 4 ]
Kommersant reported that Nasser said the supply deficit could worsen as the war between the US and Iran drags on, and that the world oil market has received about 3 billion barrels less since US and Israeli strikes on Iran began, citing Reuters. Interfax described the disruption as a Middle East conflict, alongside an excerpt about a Houthi representative that is cut off. [ 1 , 4 ]
Nasser said Aramco maintained stable supplies during the conflict by using storage abroad and promptly repairing damaged infrastructure, and that the company is looking for alternative export routes and additional storage overseas to avoid over-reliance on a single delivery method. He said Aramco can reach its maximum sustainable production level of 12 million barrels per day within days, that “our system is not damaged,” and that the company holds strategic reserves and can isolate sections and redistribute output, Interfax reported. TASS reported that Nasser noted oil consumption is growing and that countries will need even larger supply volumes. [ 1 , 5 ]
RIA Novosti carried the warning on reserves in a headline with no article text available. [ 3 ]
Why it matters
The warning from the head of the world’s largest crude exporter points to sustained pressure on oil and especially refined product prices while shipments through the Strait of Hormuz remain limited, a burden that reaches consumers and fuel-importing economies well beyond the region. The G7 reserve release described in the documents is presented as a temporary cushion rather than a fix, and Nasser’s estimate of up to two years to rebuild reserves suggests the strain may outlast the immediate disruption.
Key facts
- Amin Nasser, head of Saudi state oil company Saudi Aramco, said world oil reserves that offset supply disruptions have fallen to a “frighteningly low” level. [ 1 , 2 , 3 , 5 , 6 ]
- Nasser said pressure on both crude and refined product markets will intensify until the Strait of Hormuz fully opens and market confidence is restored. [ 1 , 2 , 6 ]
- He said prices for oil products have risen more than crude prices. [ 1 , 2 ]
- The G7 decided to release up to 100 million barrels of oil and diesel from strategic reserves, a move Nasser said would buy time but not remove the supply-demand imbalance. [ 1 , 2 ]
- According to Nasser, even after shipping through the Strait of Hormuz resumes, it could take up to two years to replenish reserves. [ 1 , 4 ]
- Nasser said Aramco can reach its maximum sustainable output of 12 million barrels per day within days and that its system has not been damaged. [ 1 ]
- Kommersant reported Nasser said the world oil market has lost about 3 billion barrels since US and Israeli strikes on Iran began. [ 4 ]
- Nasser said oil consumption is growing and countries will need even larger volumes of supply, TASS reported. [ 5 ]
Confirmed by several sources
- Amin Nasser, head of Saudi Aramco, said world oil reserves are at a “frighteningly low” level. [ 1 , 2 , 3 , 5 , 6 ]
- He spoke at the Energy Intelligence forum in London. [ 1 , 2 , 4 ]
- He said market pressure will persist until the Strait of Hormuz is fully open to shipping and market confidence returns. [ 1 , 2 , 6 ]
- He said the G7 release of strategic reserves will provide only temporary relief and will not resolve the supply-demand imbalance. [ 1 , 2 ]
- The G7 agreed to release up to 100 million barrels of oil and petroleum products from strategic reserves. [ 1 , 2 ]
- Nasser said it could take up to two years to restore reserves even after shipping resumes. [ 1 , 4 ]
Still unclear
- What caused the disruption to shipping through the Strait of Hormuz, and when it began. All documents refer to the strait not being fully open, but none states why or when the disruption started.
- The exact nature of the conflict referred to: Interfax mentions a Middle East conflict and a Houthi representative, while Kommersant describes a war between the US and Iran and US and Israeli strikes on Iran. The documents describe the conflict differently and do not reconcile the accounts; Interfax's article text is also cut off mid-sentence.
- The composition and timing of the G7 release: Interfax refers to up to 100 million barrels of oil and diesel, while Vedomosti attributes to French President Emmanuel Macron a figure of up to 100 million barrels of oil and petroleum products, primarily diesel, over four months. The two documents give differing detail on the same measure, and only one names Macron as the source of the announcement.
- Aramco's 12 million barrels per day maximum sustainable output and its use of foreign storage. These operational details appear in a single document (Interfax).
- The roughly 3 billion barrels the market has lost since strikes on Iran began. This figure appears only in Kommersant, which attributes it to Nasser via Reuters.
What local media are saying
Timeline, local time
- Interfax reports Nasser’s remarks at the Energy Intelligence forum in London, warning of “frighteningly low” world oil reserves and pressure on oil and product markets until the Strait of Hormuz opens. [ 1 ]
- Vedomosti reports the same remarks and adds that the G7 will release up to 100 million barrels from strategic reserves over four months, as stated by French President Emmanuel Macron on October 2. [ 2 ]
- Kommersant reports Nasser saying reserves could take up to two years to restore and that the market has lost about 3 billion barrels since US and Israeli strikes on Iran began. [ 4 ]
- RBC reports that world oil reserves are “frighteningly small,” creating a risk of market deterioration if shipping through the Strait of Hormuz is not fully restored. [ 6 ]