Saudi Aramco CEO: oil inventories at stress level with only 10% available

Investing.com -- Global oil storage accessible to the market has fallen to critically low levels, creating increased fragility in the market and pushing prices higher, according to industry executives speaking at a forum in London this week.

Amin Nasser, CEO of Saudi Arabia's state oil company Saudi Aramco, told the Energy Intelligence Forum in London that available commercial inventories have reached a stress point. "Less than 6 billion barrels of commercial inventories remain today, with the vast majority not practically available, so the system is already straining," Nasser said.

Governments and energy companies have withdrawn oil from stockpiles throughout the year to ease pressure in a global oil market facing supply disruptions linked to conflicts in the Middle East and Ukraine.

More than 1 billion barrels of oil have been released primarily from onshore commercial inventories since the start of this year's Middle East crisis, Nasser said, describing it as the last major tool available.

The International Energy Agency, which coordinates strategic oil reserves for Western nations, is preparing to release 100 million barrels of crude and diesel to address rising diesel prices. It remains unclear whether some of this volume will include portions from its record 400 million barrel release in March that have not yet reached the market.

"It took a lot of negotiations, but it is 100 million," Nasser said of the IEA decision. "Inventories are reaching a stress level. Only 10% or less is available, that's why they struggle with 100 million barrels."

World oil demand stands at about 102 million barrels per day, according to the IEA. Nasser noted there is substantial demand globally to build additional inventories.

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