Energy executives warn global oil reserves fall below 6 billion barrels, risking price spike

Money & Banking··SAUS·Read original
4▲2 ▼0Impact / 5
Summary · why it matters

Energy industry executives warn that global oil reserves are shrinking rapidly after more than 1 billion barrels were drawn from inventories since supply crises triggered by wars in the Middle East and Ukraine, leaving the market fragile and vulnerable to a price spike. Amin Nasser, chief executive of Saudi Aramco, said at the Energy Intelligence Forum in London that worldwide commercial oil inventories have fallen below 6 billion barrels, and only 10% or less of that can actually be brought to market, against global oil demand that the IEA estimates at about 102 million barrels per day. The International Energy Agency is preparing to release a total of 100 million barrels of crude and diesel into the market, though it remains unclear whether this includes part of the 400 million barrels the IEA announced in its record drawdown in March. Mike Wirth, chief executive of Chevron, said the decline in oil inventories is pushing up the price floor for oil, while U.S. Department of Energy data show crude stockpiles in the U.S. Strategic Petroleum Reserve have fallen to their lowest level since October 1982. Tengku Muhammad Taufik, chief executive of Petronas, warned that if the winter is severe, the natural gas market could face severe conditions in the first quarter of 2027.

Impact on assets 3

Energy▲
Others▲
⛏Brent Crude Oil Futures
BRENT
▲ PositiveSupplyrelevance

Shrinking global oil reserves and low inventories tighten supply, pushing up the price floor for Brent crude.

⛏Crude Oil WTI Futures
WTI
▲ PositiveSupplyrelevance

Global oil inventories have fallen below 6 billion barrels, tightening supply and raising the price floor for crude.

Off-coverage companies 2

Petronasi
Private± Mixedrelevance

Saudi Aramcoi
Private± Mixedrelevance