Head of Saudi Aramco Warns of Critical Decline in Oil Reserves
The world's largest supplier of crude oil has stated that global strategic oil reserves have reached a 'frighteningly low' level, reports Bloomberg.
Amin Nasser, the head of Saudi Aramco, has warned of the risk of a new crisis in the global oil market. According to him, global strategic reserves of oil and diesel fuel have decreased to critically low levels, making the market vulnerable to supply disruptions.
The Group of Seven (G7) countries agreed to release 100 million barrels from their strategic reserves over four months. Meanwhile, oil supplies from Middle Eastern countries have returned to pre-conflict levels, but prices remain high due to increased freight and tanker insurance costs.
According to Nasser's assessment, even after the resumption of shipping through the Strait of Hormuz, it may take consumer countries up to two years to restore their energy reserves.
