Oil stockpiles call: Adnoc chief says buffers have...

Summary

• Why oil stockpiles matter nowAbout 1 billion barrels have left global inventories since disruption in the Strait of Hormuz at the war’s start, Al Jaber said.
• What Al Jaber wants on oil stockpilesHe called for expanded strategic storage, larger stockpiles of products and flexible refining capacity closer to consumer markets.
• For now, the call for larger oil stockpiles puts storage and refining capacity at the centre of the energy debate.

AI Generated Summary

Abu Dhabi’s state oil chief says the world needs larger oil stockpiles to absorb shocks, since the US-Iran war exposed weak spots in energy security.

Sultan Al Jaber, who runs Adnoc, spoke on Monday as ADIPEC opened, where he stressed oil stockpiles. The Abu Dhabi energy conference lasts from November 2 to 5.

Why oil stockpiles matter now

About 1 billion barrels have left global inventories since disruption in the Strait of Hormuz at the war’s start, Al Jaber said. “Simply put, the world has eroded its supply buffers,” he added.

In some markets, diesel stocks have fallen to a 35-year seasonal low. Other regions face a liquefied natural gas shortfall of 600 billion cubic feet.

The International Energy Agency counted 8.2 billion barrels of visible oil inventories worldwide before the war. That figure covers government reserves, commercial stocks and oil held on tankers.