Saudi Aramco chief says replenishing global oil stockpiles could take two years

• The Strait of Hormuz, which typically handles around 20% of the world's oil and LNG supplies, remains severely disrupted by the ongoing U.S.-Iran war
• G7 governments agreed to release 100 million barrels of diesel and crude from emergency reserves to address the supply crisis
• Nasser stated that most stock draws have come from commercial inventories, with the remaining 6 billion barrels in storage 'not practically available'

Summary

Key Development: Saudi Aramco CEO Amin Nasser warned that replenishing global oil inventories could take up to two years, citing severe supply disruptions from the ongoing U.S.-Iran conflict.

Critical Figures

• Nearly 3 billion barrels of oil supply lost since military strikes began in late February
• Approximately 1 billion barrels drawn from emergency stocks
• Around 6 billion barrels remain in storage but are "not practically available"
• The Strait of Hormuz, which handles roughly 20% of global oil and LNG supplies, remains severely disrupted

Market Response

• G7 governments agreed to release 100 million barrels of diesel and crude from emergency reserves
• Oil prices edged lower Monday as Middle East exports recovered
• Brent crude traded at $102.20/barrel (-0.1%)
• WTI crude at $90.64/barrel (-0.5%)

Company Focus: Saudi Aramco, the world's largest oil company, delivered the warning at the Energy Intelligence conference in London.

Market Implications: Nasser emphasized that supply pressure will intensify until the Strait of Hormuz fully reopens and market confidence returns. Most stock draws have come from commercial inventories, with the CEO noting "the system is already straining." Even after the conflict resolves, meeting demand while rebuilding inventories presents a two-year challenge.

The announcement comes as crude flows through both the Strait of Hormuz and Saudi Arabia's East-West pipeline show signs of improvement, providing temporary relief to energy markets facing unprecedented supply constraints.