Global Oil Reserves Depleted by 1 Billion Barrels Since Iran War Began
Translated & summarized from Arab48 by baba
Global oil reserves have been depleted by approximately one billion barrels since the "Iran-US war" disrupted shipping, according to ADNOC CEO Sultan Al Jaber. He stated that diesel inventories are at 35-year lows in some areas and that natural gas supply deficits are significant. The conflict has driven up diesel prices and shipping costs, with Brent crude trading at around $110 per barrel.
The story in 6 lines · by baba
- Global oil reserves have been depleted by approximately 1 billion barrels since the "Iran-US war" began.
- ADNOC CEO Sultan Al Jaber stated diesel inventories are at 35-year lows in some regions.
- Natural gas supply deficits in some areas reach up to 600 billion cubic feet.
- Diesel prices have surged due to supply disruptions, threatening inflation.
- Shipping and logistics costs now represent 30% of the cost per barrel, up from 5%.
- Brent crude is trading near $110 per barrel, a 50% increase since February.
The world is depleting its energy reserves, with approximately one billion barrels of oil withdrawn from global stockpiles since the "Iran-US war" disrupted shipping through the Strait of Hormuz, according to Sultan Al Jaber, CEO of Abu Dhabi National Oil Company (ADNOC). Speaking at the ADIPEC conference in the UAE, Al Jaber stated that diesel inventories in some regions have reached 35-year lows for this time of year, while other areas face a natural gas supply deficit of up to 600 billion cubic feet.
Diesel prices have surged to unprecedented levels in many markets due to supply disruptions caused by the conflict, threatening to fuel inflation and increase costs for both governments and consumers. Al Jaber emphasized the need to expand strategic storage, increase product inventories, and develop flexible refining capacities closer to consumption markets, advocating for infrastructure development supported by advanced logistics systems.
Shipping and logistics costs have risen significantly, now accounting for 30% of the cost per barrel, compared to just 5% before the "Iran-US war." Benchmark Brent crude is currently trading around $110 per barrel, a roughly 50% increase from its February price before the conflict began.
Last month, the International Energy Agency approved the release of over 20 million barrels of diesel into markets, alongside remaining oil from an unprecedented draw on emergency reserves announced in March, aimed at boosting supply and curbing price hikes. Amin Nasser, Senior Executive Officer of Saudi Aramco, noted last month that remaining commercial inventories are below six billion barrels, with most not practically available for use.