GLOBAL OIL RESERVES UNDER SEVERE PRESSURE AS IRAN WAR WIPES OUT NEARLY ONE BILLION BARRELS

November 2, 2026

ABU DHABI: The ongoing US-Israeli war against Iran has triggered a massive depletion of global oil inventories, with nearly one billion barrels of oil withdrawn from worldwide stocks since the conflict disrupted shipping through the strategically critical Strait of Hormuz. Sultan Al Jaber, chief executive of Abu Dhabi National Oil Company (ADNOC), warned on Monday, November 2, that the unprecedented drawdown has significantly weakened global energy supply buffers.

Speaking at the ADIPEC energy conference in the United Arab Emirates, Al Jaber highlighted the growing vulnerability of international energy markets. He revealed that diesel stockpiles in certain regions had fallen to their lowest seasonal levels in 35 years, while some markets were facing a liquefied natural gas (LNG) supply shortfall of approximately 600 billion cubic feet.

The disruption has also pushed diesel prices in several markets to record levels, intensifying inflationary pressures and increasing the cost-of-living burden on governments, industries and ordinary consumers. According to Al Jaber, shipping and logistics expenses have increased dramatically, accounting for approximately 30 per cent of the cost of a barrel of oil, compared with just 5 per cent before the Iran war.

International benchmark Brent crude was trading at around $110 per barrel, approximately 50 per cent higher than its February level before the conflict began.

Al Jaber called for expanded strategic petroleum storage, larger inventories of refined petroleum products and more flexible refining capacity located closer to consumer markets. He emphasised that energy infrastructure must be developed before supply emergencies emerge.

Meanwhile, the International Energy Agency had agreed during the previous month to release more than 20 million barrels of diesel, alongside remaining oil from an unprecedented emergency reserve release pledged in March to stabilise supplies and contain rising prices.

Saudi Aramco chief executive Amin Nasser had also warned that less than six billion barrels of commercial oil inventories remained globally, with the majority not practically available for immediate consumption.

The developments underscore the growing pressure on international energy security as disruptions around the Strait of Hormuz threaten global petroleum supplies, transportation networks and economic stability.