Global Oil Inventories Plummet to Critical Lows Amid Supply Shocks

Global oil inventories have dropped to critically low levels, threatening market stability and putting intense upward pressure on prices, industry executives warned at an energy forum in London.

Alarming Inventories and Strategic Reserves

Amin Nasser, CEO of Saudi Aramco, stated during the Energy Intelligence forum that commercial inventories have fallen below 6 billion barrels, with the vast majority unavailable for practical use. Since the onset of the Middle East crisis, over 1 billion barrels have been released, primarily from land-based commercial stockpiles.

Meanwhile, the International Energy Agency is preparing to release 100 million barrels of crude oil and diesel to help cool soaring prices. Nasser emphasized that inventories are reaching critical depletion, with only 10% or less actually available for use, while global demand stands at roughly 102 million barrels per day.

Market Fragility and Future Outlook

Chevron CEO Mike Wirth noted that the loss of market shock absorbers has made the global system much more fragile. Industry leaders estimated that market turmoil will persist beyond next year, as refilling inventories while meeting ongoing global demand could take years.

"The depletion of global oil reserves and commercial stockpiles leaves the market vulnerable to unprecedented supply shocks and extreme price volatility." — Industry Analysts

Data from the US Department of Energy confirmed this vulnerability, showing that crude oil inventories in the US Strategic Petroleum Reserve have dropped to their lowest level since October 1982.