Saudi Aramco CEO Warns Oil Inventory Recovery Will Take Years

Saudi Aramco CEO Amin Nasser warned on Monday that replenishing global oil inventories could take up to two years. Speaking at the Energy Intelligence conference in London, Nasser reported that nearly 3 billion barrels of oil supply have been lost since the United States and Israel launched military strikes on Iran in late February.

Nasser noted that while 1 billion barrels were released from stocks, much of the remaining 6 billion barrels in storage are not practically available, leaving the system straining. These shortages follow significant disruptions in the Strait of Hormuz, a waterway that typically handles 20% of global oil and LNG supplies.

In response to pressure from U.S. President Donald Trump, G7 governments agreed on Friday to release 100 million barrels of diesel and crude from emergency reserves. Despite these systemic pressures, oil prices traded marginally lower on Monday as exports through the Strait of Hormuz and Saudi Arabia's East-West pipeline increased.