{"id":72600,"date":"2026-10-05T05:38:13","date_gmt":"2026-10-05T09:38:13","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/saudi-aramco-ceo-warns-of-scarily-thin-oil-stocks-amid-fresh-pipeline-attack\/72600\/"},"modified":"2026-10-05T05:38:13","modified_gmt":"2026-10-05T09:38:13","slug":"saudi-aramco-ceo-warns-of-scarily-thin-oil-stocks-amid-fresh-pipeline-attack","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/saudi-aramco-ceo-warns-of-scarily-thin-oil-stocks-amid-fresh-pipeline-attack\/72600\/","title":{"rendered":"Saudi Aramco CEO Warns of &#8220;Scarily Thin&#8221; Oil Stocks Amid Fresh Pipeline Attack"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Saudi Aramco (<a href=\"\/stock\/2222\">2222<\/a>) CEO Amin Nasser<\/strong> warns that global oil inventories have reached <strong>&quot;scarily thin&quot;<\/strong> levels, estimating that nearly <strong>3 billion barrels<\/strong> of supply have been lost since the start of regional conflicts.<\/li>\n<li>A <strong>fresh attack<\/strong> on a pumping station in Khurais has reportedly halted flows through Saudi Arabia&#39;s critical <strong>East-West pipeline<\/strong> again, just as the company was restoring capacity to <strong>80%<\/strong>.<\/li>\n<li><strong>Eurozone Producer Price Index (PPI)<\/strong> for September surged to <strong>8.2% year-over-year<\/strong>, significantly higher than the <strong>7.9%<\/strong> estimate, driven by persistent energy price pressures.<\/li>\n<li><strong>Spain&#39;s <a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">crude oil<\/a> imports<\/strong> rose by <strong>11% year-over-year<\/strong> in August to <strong>5.7 million tonnes<\/strong>, highlighting continued European reliance on external energy supplies despite broader transition goals.<\/li>\n<\/ul>\n<h2>Global Oil Supply Under Intense Strain<\/h2>\n<p>Saudi Aramco (<a href=\"\/stock\/2222\">2222<\/a>) CEO <strong>Amin Nasser<\/strong> delivered a stark warning at the Energy Intelligence Forum, stating that the global energy system is currently <strong>&quot;straining&quot;<\/strong> under the weight of depleted inventories. Nasser noted that even if the <strong>Strait of Hormuz<\/strong> were to fully reopen today, it could take up to <strong>two years<\/strong> for oil-consuming nations to replenish their stocks to safe levels. He highlighted that while major economies have released roughly <strong>100 million barrels<\/strong> of emergency reserves, these measures provide only temporary relief and do not address the fundamental supply-demand imbalance.<\/p>\n<p>The fragility of the supply chain was underscored by reports of a <strong>new attack<\/strong> on the <strong>East-West pipeline<\/strong> at a pumping station in <strong>Khurais<\/strong>. This critical infrastructure, which allows Saudi Arabia to bypass the Strait of Hormuz by transporting oil to the Red Sea, had only recently been restored to <strong>80% capacity<\/strong> following previous disruptions. The CEO remarked that without this &quot;lifeline,&quot; <strong>Brent Crude (<a href=\"\/stock\/LCO\">LCO<\/a>)<\/strong> prices could have spiked as high as <strong>$200 per barrel<\/strong>.<\/p>\n<h2>Eurozone Inflation Pressures Accelerate<\/h2>\n<p>Economic data released today shows that the Eurozone continues to battle significant inflationary headwinds. The <strong>September Producer Price Index (PPI)<\/strong> jumped <strong>8.2%<\/strong> on an annual basis, overshooting the <strong>7.9%<\/strong> consensus forecast. On a monthly basis, the PPI rose <strong>1.9%<\/strong>, matching expectations but maintaining a high trajectory from the previous month&#39;s <strong>1.6%<\/strong> increase.<\/p>\n<p>In contrast to the rising price data, <strong>Eurozone Sentix Investor Confidence<\/strong> for September came in at <strong>2.7<\/strong>, missing the estimated <strong>4.5<\/strong> and falling from the previous reading of <strong>5.1<\/strong>. This decline reflects growing investor anxiety over the impact of sustained energy costs on industrial output. Meanwhile, <strong>Spain\u2019s<\/strong> energy dependence remains high, with <strong>CORES<\/strong> reporting an <strong>11% year-over-year increase<\/strong> in crude oil imports for August, totaling <strong>5.7 million tonnes<\/strong>.<\/p>\n<h2>Long-Term Demand Outlook and Strategic Shifts<\/h2>\n<p>Despite the rapid electrification of passenger vehicles, Saudi Aramco (<a href=\"\/stock\/2222\">2222<\/a>) remains bullish on long-term oil demand, particularly in <strong>China<\/strong>. Nasser projected that the growth of the Chinese <strong>chemical industry<\/strong> will more than offset any reduction in oil consumption caused by electric vehicles. The company is actively targeting a <strong>liquids-to-chemical capacity<\/strong> of <strong>4 million barrels per day<\/strong> by 2040, with a significant portion of that investment directed toward the Chinese market.<\/p>\n<p>Aramco is also diversifying its energy portfolio, with plans to produce approximately <strong>9 million barrels of oil equivalent daily<\/strong> from <strong>natural gas<\/strong> by 2040. To mitigate future supply shocks, the company is considering a massive expansion of its international stockpiles, potentially increasing its oil inventories held outside of Saudi Arabia by <strong>two to three times<\/strong>. This strategic shift aims to ensure that physical barrels remain available to customers even during periods of extreme geopolitical volatility.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Saudi Aramco (2222) CEO Amin Nasser warns that global oil inventories have reached &quot;scarily thin&quot; levels, estimating that 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