Nearly 1 billion barrels of oil have been withdrawn from global reserves after the disruption of shipping through the Strait of Hormuz due to the war between the United States, Israel and Iran. This was announced by the CEO of the state oil company of Abu Dhabi ADNOC Sultan al-Jaber, quoted by Reuters.
During the ADIPEC energy conference in Abu Dhabi, he warned that the prolonged crisis had depleted a significant part of the reserves that allow the market to compensate for supply disruptions.
According to Al-Jaber, the problem is no longer limited to having enough oil. The ability to reach consumers is increasingly important.
Transport and logistics costs, which before the crisis represented less than 5% of the value of a barrel of oil, now exceed 30%, he said.
The Strait of Hormuz is one of the most important routes for global trade in energy raw materials. Before the conflict began, about 20 million barrels of oil and petroleum products passed through it daily. The military actions that began in late February led to a sharp restriction of shipping and forced producers to look for alternative routes.
The consequences are already being felt in the fuel market. According to the head of ADNOC, diesel stocks in some markets have fallen to their lowest seasonal levels in 35 years.
In March, the International Energy Agency coordinated the release of 400 million barrels from the emergency oil reserves of member countries. The measure was the largest such operation in the history of the organization.
Oil industry experts warn that even if shipping through the Strait of Hormuz normalizes, the restoration of depleted stocks will not be quick.
In early October, Saudi Aramco CEO Amin Nasser said that replenishing global reserves could take up to two years. The reason is that producers will have to simultaneously meet current demand and restore the quantities used during the crisis.
The prolonged depletion of stocks increases the risk of new fluctuations in oil and fuel prices, especially if additional supply disruptions occur.
According to Al Jaber, the crisis shows the need for larger strategic reserves, more reliable energy infrastructure and diversification of transport routes.