Global Oil Stocks 'Scarily Thin' Amid Middle East Chaos, Aramco CEO Warns

Global oil stockpiles are precariously low, with the energy system already under strain, according to Amin Nasser, the chief executive of Saudi energy giant Aramco. His warning comes as G7 nations agreed to release inventories to temper supply concerns amid escalating conflict in the Middle East.

Recent days have seen Houthi rebels launch fresh attacks on Aramco oil sites in Riyadh. Footage captured huge fireballs and plumes of thick black smoke billowing into the sky after ballistic missile strikes on Sunday. The Iran-backed group also targeted the oil-rich Khurais region in the country's east.

Yemen's Houthi military spokesman Yahya Saree stated that 'both operations successfully achieved their objectives,' claiming the strikes were precise and caused significant fires at the targeted sites. According to a Saudi energy source, these attacks again halted oil flows in Saudi Arabia's East-West pipeline.

The pipeline, which runs approximately 1,200 kilometers (700 miles) between Saudi Arabia's main oil fields in the east and the Yanbu terminal on the Red Sea, had been shut down previously in September following attacks originating from Iraq. The East-West pipeline became crucial for Saudi oil trade after Iran began blockading the Strait of Hormuz, a primary export route.

Iran has vowed to keep the vital waterway shut unless the U.S. meets its demands, insisting there is "no military solution" to the situation. Tehran has outlined seven conditions for reopening the strait, which prior to the conflict saw about a fifth of the world's traded oil flow through daily. The closure of this key Persian Gulf strait has contributed to significant spikes in global oil prices. In the UK, diesel costs have risen above £2 per liter for the first time.

In response to rising costs and pressure from the U.S., G7 leaders agreed to release 100 million barrels of diesel and crude oil from their emergency reserves. However, concerns remain about the global supply system's ability to cope with ongoing disruptions. The United States had previously threatened a diesel export ban, prompting European leaders, who had sought to defy U.S. demands due to their own winter supply concerns, to agree to the coordinated reserve release.