Global oil inventories fall to low Saudi Aramco warns of rising supply pressures

On October 5, Saudi Aramco CEO AminNasser said that global oil inventories used to cushion supply shocks have become "worryingly low" and that if the Strait of Hormuz cannot be reopened, the global energy market faces further deterioration. Just days ago, governments in the world's major economies announced plans to release up to 100 million barrels of emergency crude oil and diesel stockpiles to ease rising fuel costs. Nasser told an Energy Intelligence Forum in London on Monday: "Until the Strait of Hormuz is fully reopened and market confidence is restored, pressures on both sides of supply and demand will intensify further. Although the tight supply of crude oil is already very serious, the increase in refined oil prices has become even more drastic." Nasser said Saudi Aramco has kept the company's oil supply resilient during the conflict by leveraging international oil storage facilities and quickly repairing damaged infrastructure. In his speech, he did not mention recent reports of attacks on Saudi Arabia. Nasser said Saudi Aramco is looking for alternative crude oil export routes and adding international storage facilities to reduce its reliance on a single transportation method to supply crude oil to global buyers.