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Global oil supply buffer running 'scarily thin,' Aramco CEO says. Anthony Di Paola, Grant Smith and Charles Gorrivan Mon, October 5, 2026 at 4:20 a.m. EDT (Bloomberg) - The oil stockpiles that cushion the world from supply shocks have become "scarily thin," putting markets at risk of worsening unless the Strait of Hormuz reopens, according to the head of Saudi Arabia's state producer. He was speaking just days after governments in the world's biggest economies announced plans to release as much as 100 million barrels of emergency oil and diesel stocks to ease rising fuel costs. "Until Hormuz fully re-opens and confidence returns, the crude reality is that pressure at both ends of the barrel will intensify," Amin Nasser, chief executive of Saudi Aramco, said at the Energy Intelligence Forum in London on Monday. "While the squeeze on crude is serious, refined fuel prices have risen even more sharply." Releasing stockpiles will buy economies some time but won't fix the imbalances between supply and demand, Nasser said. Even after the vital shipping chokepoint at Hormuz reopens, it may take as long as two years for energy-consuming countries to replenish their stockpiles, he said. Gulf producers are working to ramp up production and exports and have succeeded in boosting crude flows to near pre-war levels. Saudi Arabia and neighbors like the United Arab Emirates and Kuwait have been using their own tankers to ship crude through Hormuz, which has been at least partly obstructed since the US and Israel attacked Iran at the end of February, kicking off a regional war. The higher flows have provided scant relief for oil markets, which are still pricing in security risks to supply in the Persian Gulf and Red Sea. Brent crude, the international benchmark, has traded around $100 a barrel over the past month, even as more tankers transited Hormuz. Saudi Arabia has been a key part of that increase as Aramco over the past month boosted crude shipments from its main export terminal at Ras Tanura in the Persian Gulf. The company reacted quickly to a temporary halt to its main cross-country pipeline after an attack last month. The company has since brought flows on the East-West pipeline back to about 80% of capacity, meaning it also has more oil to ship from the Red Sea. Aramco's oil supplies have proved resilient through the conflict by relying on international storage and working to quickly repair damaged infrastructure, Nasser said. He didn't mention reports of recent attacks on the kingdom in his speech.

"Aramco" prepares to establish an independent gas unit... a new step in the energy sector In a step aimed at maximizing value Riyadh - Al Arabiya Business Published on: September 27, 2026: 09:48 AM GST Last updated: September 27, 2026: 02:04 PM GST Listen to the article. The audio text is automatically generated by an automated system. Two-minute read Bloomberg News reported on Saturday, citing informed sources, that oil giant Saudi Aramco has enlisted the banking firm Evercore to provide advice on a restructuring to create an independent gas unit and pave the way for a possible initial public offering in the future. The agency added that Boston Consulting Group also advised Aramco on separating its gas activities under a project named (Project Gamma), in a step aimed at maximizing value, citing Reuters. It noted that this step might allow attracting new investments into the gas unit or lead to an initial public offering or the listing of a minority stake in it, with the business valued at more than $100 billion. Reuters reported days ago that the Saudi oil giant intends to reorganize its business by creating a new gas unit, giving Saudi Aramco a specialized platform to develop its domestic natural gas resources and build a portfolio of liquefied natural gas operations abroad. Aramco's gas business growth is mainly based on the Jafurah project, in which the company is investing more than $100 billion to develop. Jafurah and other projects are expected to contribute to increasing gas production by about 80% by 2030. Aramco aims to generate up to $15 billion in additional operating cash flows from its gas business by that year. Ashraf Jarrar, an international markets broker at United Securities, said that the plan to restructure Aramco's gas unit enhances transparency and aims to attract foreign investors and liquidity. He added that maximizing Aramco's market value by enabling gas investments estimated at about $100 billion is in line with Vision 2030.

Saudi Aramco diversifies its export routes. Two strategic points concentrate a large part of the oil traffic in the Middle East, one is the Strait of Hormuz and the other is Bab el-Mandeb, located at the southern entrance to the Red Sea. However, Saudi Aramco it has other alternatives for moving its crude oil, including the Saudi Arabian East-West pipeline, which allows transporting oil to the Red Sea coast, as well as access to the Sumed system in Egypt. The Sumed pipeline is approximately 320 kilometers long and connects the Red Sea to the Mediterranean through Egyptian territory. This infrastructure provides an additional option for transporting crude oil when conditions necessitate changes to the usual maritime routes. Nasser noted that having several alternatives allows Aramco to direct a greater number of ships to specific corridors depending on the circumstances and continue supplying its customers. A fourth and fifth route for Saudi crude. Saudi Aramco intends to further expand this flexibility by developing new corridors for its oil exports, the company is already conducting engineering and feasibility studies related to a fourth and fifth route. For now, Nasser has not revealed what their potential routes would be or when they might begin operating. The alternatives are still in the evaluation phase, if they move forward, they would expand the logistical options available for Saudi crude and reduce the supply chain's exposure to disruptions in maritime corridors or existing infrastructure. Japan gains importance for oil storage. Saudi Aramco strategy also includes increasing its storage capacity outside of Saudi Arabia, Japan is among the countries being considered for this expansion. The oil company is in talks with authorities and its partners in the country to explore a possible increase in its crude oil storage capacity. Having larger volumes stored near strategic markets would allow for a faster response to temporary disruptions and provide more options to guarantee deliveries. In this way, the combination of international storage, pipelines and different maritime corridors strengthens Saudi Aramco's ability to manage its supply chain. Aramco is betting on an oil network with more alternatives. The strategy presented by Amin Nasser seeks to reduce operational dependence on specific routes through a transport and storage network with a greater number of alternatives. Within this framework, the Strait of Hormuz it remains a vital route for the region's oil exports, at the same time, the East-West pipeline, Bab el-Mandeb, and access to the Sumed system allow for the rerouting of shipments when circumstances require it. With studies to develop new routes and the possible expansion of its storage capacity in Japan, Saudi Aramco seeks to further strengthen its responsiveness and maintain the supply of crude oil to its customers even when disruptions occur in certain corridors. Verified Author Analyst and writer of news specialized in industrial technology, with a solid background in engineering. My work focuses on curating and synthesizing complex information, transforming technical advances and regulatory changes into journalistic reports.