Hormuz disruption drained nearly 1 billion barrels from global oil stocks: ADNOC chief

The disruption to shipping through the Strait of Hormuz following the outbreak of the Iran war has depleted nearly one billion barrels of oil from global inventories, UAE Minister and Abu Dhabi National Oil Company (ADNOC) CEO Dr Sultan Al Jaber has said.

Speaking at the inauguration of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), Al Jaber said the ability to transport energy safely to markets was also a key measure of energy security.

"The world has drained nearly one billion barrels from inventories since the war disrupted shipping through the Strait of Hormuz," Al Jaber said.

Diesel inventories in some producing countries have fallen to their lowest levels in 35 years, while global liquefied natural gas (LNG) supplies have declined by 600 billion cubic feet.

The conflict has also significantly increased transportation costs. Shipping and logistics expenses, which accounted for less than 5 per cent of the price of a barrel of oil before the war, now make up more than 30 per cent, Al Jaber said.

He stressed the need for greater investments in storage infrastructure, transportation networks and alternative supply routes to strengthen energy security.

Gulf countries are working to reduce their dependence on the Strait of Hormuz by developing alternative routes for transporting oil, while also seeking to increase production.

A total of 2,260 companies are participating in this year's ADIPEC, with 30 countries setting up pavilions. The exhibition will conclude on November 5.