Aramco CEO: Replenishing oil inventories could take up to two years — CNBC
In London, United Kingdom, Saudi Aramco CEO Amin Nasser said that replenishing global oil inventories could take up to two years. According to him, pressure on the market will intensify until the strategically important Strait of Hormuz fully resumes operations and confidence returns to energy markets. This was reported by CNBC.
Supply losses and inventories
Speaking at the Energy Intelligence conference, Nasser said that nearly 3 billion barrels of oil supplies were lost after U.S. and Israeli military strikes on Iran in late February. At the same time, around 1 billion barrels of oil were withdrawn from inventories.
According to the Saudi Aramco chief, most of the withdrawn volumes came from commercial inventories. He also said that approximately 6 billion barrels remaining in storage are not practically available to the market. Nasser added that the supply system is already under strain.
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Strait of Hormuz and prices
According to CNBC, the war has significantly disrupted shipping through the Strait of Hormuz. Normally, around 20% of global oil and liquefied natural gas supplies pass through this narrow waterway.
Nasser's statement came after G7 countries agreed to release 100 million barrels of diesel fuel and oil from emergency reserves. On Monday, oil prices declined slightly amid reports of rising Middle Eastern oil exports through the Strait of Hormuz and Saudi Arabia's East-West pipeline. December Brent futures traded at $102.20 per barrel, while November WTI futures stood at $90.64.
