Aramco CEO Warns Oil Inventories at Stress Level With Only 10% Available

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Summary · why it matters

Saudi Aramco CEO Amin Nasser said global commercial oil inventories have fallen to a stress point, with less than 6 billion barrels remaining and only 10% or less practically available to the market. Speaking at the Energy Intelligence Forum in London, Nasser said more than 1 billion barrels have been released primarily from onshore commercial inventories since the start of this year's Middle East crisis, describing stockpiles as the last major tool available. The International Energy Agency is preparing to release 100 million barrels of crude and diesel to address rising diesel prices, though it remains unclear whether some of that volume will include portions of its record 400 million barrel release in March that have not yet reached the market. Nasser said the IEA decision took a lot of negotiations, and that inventories are reaching a stress level, which is why the agency struggled with 100 million barrels. World oil demand stands at about 102 million barrels per day, according to the IEA, and Nasser noted substantial global demand to build additional inventories.

Impact on assets 4

Consumer Staples▲
Others▲
⛏Brent Crude Oil Futures
BRENT
▲ PositiveSupplyrelevance

Aramco CEO warns commercial oil inventories have fallen to a stress level with only ~10% practically available, signaling tight crude supply supportive of Brent.

⛏Crude Oil WTI Futures
WTI
▲ PositiveSupplyrelevance

Aramco CEO warns commercial oil inventories have fallen to a stress level with only ~10% practically available, signaling tight crude supply supportive of WTI.

⛏Heating Oil Futures
HEATOIL
▲ PositiveSupplyrelevance

IEA preparing to release 100 million barrels of crude and diesel to address rising diesel prices amid stressed inventories, underscoring tight distillate supply.

Off-coverage companies 1

Saudi Aramcoi
Private▲ PositiveSupplyrelevance

Aramco CEO Nasser says global oil inventories are at a stress point with only ~10% available, a tight-supply backdrop favorable to the producer.