Saudi Aramco boss admits global oil stockpiles are ‘scarily thin’ amid mounting chaos in Middle East
Saudi Aramco's chief executive has warned that global oil stockpiles are dangerously depleted, as Iran-backed Houthi rebels launched fresh attacks on Saudi oil facilities and disrupted the East-West pipeline carrying crude to export terminals. The attacks and continued Iranian blockade of the Strait of Hormuz are compounding global supply concerns at a time when reserves are at critically low levels, raising fears of further price increases worldwide.
The assaults struck Aramco sites near Riyadh and the Khurais area on Sunday, causing large fires and stopping flows through the East-West pipeline once again. In response, G7 nations agreed on Friday to release 100 million barrels of oil from emergency reserves, though the UK remains particularly vulnerable with just 40 days of stock compared to the EU's 80 days. UK diesel prices have surged above £2 per litre for the first time, with the cost rising 57.6p since February, whilst Iran's parliament has vowed to keep the Strait of Hormuz blockaded unless the US meets seven specified conditions.
- Oil stockpiles at dangerous lows as Middle East tensions escalate
- Houthi attacks disrupt Saudi pipeline again
- UK diesel prices hit record highs amid supply constraints
New here? Start with this
Global oil reserves have fallen to critically low levels, leaving the world's energy supply vulnerable to disruption. The Middle East supplies roughly a third of global oil, so instability in the region poses a significant risk to supplies worldwide.
Tensions between Iran and Saudi Arabia are creating severe problems for global oil supplies. Houthi rebels, backed by Iran, have attacked Saudi Arabian oil infrastructure. Iran has also imposed a blockade on the Strait of Hormuz, a crucial shipping route for global oil, preventing supplies from reaching international markets.
Disruptions to oil supplies drive up fuel prices worldwide, affecting consumers and businesses alike. Since global oil reserves are now depleted, there is limited capacity to absorb supply shocks, meaning fuel prices could rise sharply and remain elevated for extended periods.