The head of Saudi Aramco said that global oil stocks to cushion supply shocks are already “frighteningly low,” and if the Strait of Hormuz cannot be reopened, market conditions may deteriorate further. Just a few days ago, the governments of the world's major economies announced plans to release up to 100 million barrels of emergency oil and diesel reserves to mitigate rising fuel costs. Saudi Aramco CEO Amin Nasser said at the Energy Intelligence Forum in London on Monday: “Until the Strait of Hormuz is fully reopened and market confidence is restored, the reality is that pressure on both ends of crude oil and refined oil products will increase. Although the supply of crude oil is already very tight, the price of refined oil products is rising faster.” Nasser said that crude oil consumption is still growing, and countries will need more supplies for at least the next two years as they rebuild their inventories. This could mean at least 2 million barrels of new global demand every day; if governments decide to raise inventory levels, the new demand could be even higher. Nasser said that when the US-Iran war broke out, global oil stocks were about 10 billion barrels, but now they have dropped to less than 6 billion barrels. Due to various technical limitations, approximately 10% of the inventory is actually usable.

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