Global oil markets are facing a tightening supply buffer as crude stockpiles available to cushion major disruptions have fallen to critically low levels, Saudi Aramco CEO Amin Nasser said on Monday. Speaking at the Energy Intelligence Forum in London, Nasser warned that pressure on energy markets could increase further unless shipping through the Strait of Hormuz returns to normal and confidence in regional supply improves.

His comments came days after governments in major economies announced plans to release up to 100 million barrels of emergency crude and diesel reserves to help contain rising fuel costs. Nasser said releasing strategic stockpiles could provide temporary relief but would not resolve the underlying imbalance between supply and demand. He estimated that even after the Strait of Hormuz fully reopens, energy-consuming countries could require as much as two years to rebuild depleted reserves.

Gulf oil producers have been working to increase production and exports, with crude flows recovering to levels close to those seen before the conflict. Saudi Arabia, the United Arab Emirates and Kuwait have also used their own tankers to transport crude through the Strait of Hormuz, a critical route for global energy supplies. The waterway has faced disruption since the conflict involving the US, Israel and Iran began in late February.

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Despite increased shipments, oil markets continue to reflect concerns about security risks affecting supplies from the Persian Gulf and Red Sea. Brent crude, the international benchmark, has remained around $100 a barrel over the past month, even as more tankers have travelled through the Strait. The limited relief in prices reflects continued uncertainty over the reliability of future energy flows.

Saudi Arabia has contributed significantly to the increase in crude exports, with Aramco boosting shipments from its main export terminal at Ras Tanura in the Persian Gulf. The company also restored flows through its East-West pipeline to about 80 per cent of capacity after a temporary disruption, giving it greater flexibility to move crude towards the Red Sea. Nasser said Aramco is also exploring alternative export routes and additional international storage facilities to reduce dependence on any single supply route.

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