This was stated by Sultan Al Jaber, CEO of the Abu Dhabi National Oil Company (ADNOC), on Monday at the ADIPEC conference in the UAE. His comments were quoted by Reuters.
Diesel stocks in some regions are at a 35-year low for this time of year, whilst others are facing a shortfall in LNG supplies of 600 billion cubic feet, Sultan Al Jaber added.
He said that diesel prices in many markets had risen sharply to record levels, fuelled by supply disruptions during the war, and posed a threat of inflation and rising living costs for governments and consumers.
“We need expanded strategic storage facilities, larger product stocks and flexible refining capacity located closer to consumer markets,” the publication quotes Al Jaber as saying. “Infrastructure must be built before it is needed and supported by well-developed logistics.”
According to the CEO of ADNOC, the cost of shipping and logistics has risen to 30 per cent of the price per barrel, compared with 5 per cent before the war with Iran.
Brent crude, the international benchmark, is trading at around $110 per barrel, which is approximately 50 per cent higher than in February, just before the war began.
Reuters notes that last month the International Energy Agency agreed to release more than 20 million barrels of diesel and the remaining crude from the record reserves built up in March onto the market, in order to increase supply and curb the rapid rise in prices.
However, Amin Nasser, chief executive of Saudi Arabia’s state-owned oil company Saudi Aramco, previously stated that there were fewer than 6 billion barrels of commercial reserves remaining, the vast majority of which are virtually inaccessible, the publication notes.
This story was translated with the assistance of artificial intelligence.The translation was also reviewed by the Logos Press editorial team.
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