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The world has nearly burned through its oil stockpile buffer, executives say
Reuters • • business
Key Points:
- Global accessible oil inventories are critically low due to extensive releases from stockpiles amid supply disruptions caused by conflicts in the Middle East and Ukraine, increasing market fragility and upward price pressure.
- Over 1 billion barrels have been released from onshore commercial inventories since the Middle East crisis began, with the International Energy Agency planning to release an additional 100 million barrels to ease diesel price spikes.
- Only about 10% or less of global oil inventories remain readily available, complicating efforts to stabilize the market and replenish stocks, which could take years beyond meeting ongoing demand.
- The U.S. Strategic Petroleum Reserve is at its lowest level since 1982, and natural gas inventories are also depleted, raising concerns about severe price volatility during the upcoming winter.
- Energy companies like Kuwait Petroleum Corporation are actively seeking to expand storage capacity domestically and internationally to mitigate future supply risks amid persistent market uncertainties.
