# Saudi Aramco Warns Global Oil Supply Squeeze Could Worsen as Inventories Fall

- URL: https://stocks.freetheai.org/news/saudi-aramco-warns-global-oil-supply-squeeze-could-worsen-as-inventories-fall-ad0fa1
- Published: 2026-10-12T17:58:23Z
- Category: energy; sentiment: bullish; impact: high
- Written by our AI from expert market sources across the web for FreeTheAI Stocks, built by Vibhek Soni
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Saudi Aramco chief executive Amin H. Nasser warned that tight global oil supplies and fuel markets could intensify as long as transit through the Strait of Hormuz remains disrupted. Speaking at an energy conference in Riyadh, he noted that commercial onshore crude inventories have fallen below six billion barrels, leaving the market with little buffer against further supply shocks.

The shrinking reserves are largely unavailable to global buyers, compounding stress across energy markets. Diesel prices have already climbed to approximately $200 per barrel. Nasser indicated that even after the shipping corridor fully reopens, replenishing depleted inventories while meeting ongoing global consumption could take up to two years.

Looking ahead, Saudi Aramco is expanding its domestic energy infrastructure, targeting an 80% boost in sales-gas production capacity by 2030 compared to 2021 levels. The strategy supports Saudi Arabia's goal to generate electricity equally from natural gas and renewable sources by 2030, alongside investments in hydrogen and carbon capture technologies.

## Key points

- Saudi Aramco CEO Amin H. Nasser warned that global oil and fuel market tightness could escalate until the Strait of Hormuz reopens.
- Global commercial onshore oil inventories have dropped below six billion barrels, with most of the supply unavailable to the market.
- Diesel prices have reached about $200 per barrel, reflecting heavy stress across global energy supply chains.
- Rebuilding global oil inventories while meeting demand could take up to two years after shipping confidence returns.
- Saudi Aramco aims to increase sales-gas production capacity by 80% by 2030 compared with 2021 levels.

## Questions and answers

### Why is the global oil supply currently under pressure?

Disruption in the Strait of Hormuz has strained global oil and fuel markets, while commercial oil inventories have fallen below six billion barrels.

### How long could it take to rebuild global oil reserves?

Refilling global oil inventories while meeting ongoing demand could take up to two years once the Strait of Hormuz fully reopens and market confidence returns.

### What are Saudi Aramco's gas production targets for 2030?

Saudi Aramco is targeting an 80% increase in sales-gas production capacity by 2030 compared with 2021 levels, helping balance Saudi electricity generation between gas and renewables.