Saudi Aramco: Global oil reserves are almost depleted, and the market is becoming increasingly unstable.
At the forum in London, executives from leading oil companies stated that global oil reserves are dwindling: commercial reserves have fallen to less than 6 billion barrels, and most of them are practically inaccessible. MEA is preparing to release 100 million barrels of oil and diesel to stabilize prices; global demand is approximately 102 million barrels per day. Participants in the forum predict continued instability in the coming year.
Global commercial oil reserves are almost depleted: there are less than 6 billion barrels remaining in storage, and the vast majority of these are practically inaccessible, which is already straining the system. This was stated by Saudi Aramco CEO Amin Nasser at an energy exploration forum in London. The global market has faced unprecedented supply disruptions this year due to conflicts in the Middle East and Ukraine.
According to Nasser, more than 1 billion barrels of oil have been released since the beginning of the crisis in the Middle East this year – mainly from commercial reserves on land; this was the last major tool in the arsenal.
The International Energy Agency is preparing to release 100 million barrels of crude oil and diesel fuel to mitigate the sharp increase in diesel prices. It is unclear whether this figure includes the volumes from the record-breaking first shipment of 400 million barrels in March, which has not yet reached the market.
According to MEA, the global demand for oil is approximately 102 million barrels per day. At the conference, company executives stated that market instability would continue after next year, as it may take years to replenish reserves.
Vitol's CEO, Russell Hardy, stated that the world relies on maritime oil transportation from the Middle East to maintain balance during the winter, as there are no longer sufficient stockpiles in the West to draw upon.
A portion of the oil stored in facilities is unsuitable for immediate use due to operational factors, such as the condition of the tank bottoms or the oil in pipelines, as well as due to political factors – government regulations regarding minimum emergency reserves.