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ADNOC CEO Says Hormuz Disruption Has Drained Nearly 1 Billion Barrels From Global Inventories

By Market Flux···1 min read
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Sultan Al Jaber, CEO of Abu Dhabi's ADNOC, warned at ADIPEC 2026 that the disruption to the Strait of Hormuz has drained nearly 1 billion barrels from global oil inventories, leaving the world's energy supply buffers critically depleted. Diesel stocks in some markets have fallen to their lowest seasonal levels in 35 years, and a 600 billion cubic foot LNG supply gap has opened up in others.

The logistical toll of the disruption has been severe. Shipping and logistics costs have jumped from less than 5 percent of the cost of a barrel before the disruption to more than 30 percent today, a shift Al Jaber framed as a fundamental redefinition of energy security: it is now measured not only at the point of production but at the point of delivery. He called on the industry to expand strategic storage, build flexible refining capacity closer to consumer markets, and develop transport routes resilient enough to withstand future crises.

The remarks came as oil markets remained volatile. Goldman Sachs raised its Brent crude forecast to $105 a barrel for December, up from $90, citing supply risks from possible Middle East escalation, and warned Brent could surge to $140 in 2027 if Gulf production stays well below its 2025 average. Oil prices pulled back on the day, with WTI slipping below $100 and Brent breaking below $110, after reports that the Trump administration is giving Iran diplomacy more time and that US Secretary of State Rubio signaled a preference for a negotiated resolution. Separately, a tanker was struck by two unknown projectiles roughly 72 nautical miles east of Ras Al Khafji in the Arabian Gulf, with all crew accounted for and no environmental damage reported.

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Sources

  1. ETMarkets#GoldmanSachs has raised its oil price forecasts amid elevated risks to global supplies, warning that Brent crude could surge to $140 a barrel in 2027 if oil production in the Gulf region remains significantly below its 2025 average, according to Reuters. #ETMarkets Read more here
  2. RusOilGasExpert➡️ A US push to return Russian piped gas to Europe seems unlikely to succeed, but there are some interesting points in the WSJ's story. ✳️ Flows would start this winter, before a broader deal is reached, not after, as we assumed previously. ✳️ Gas would be sold through a US intermediary to get around the letter of European sanctions. ✳️ Russian revenues would be put into an escrow account in a 3rd-party jurisdiction until a full deal is reached. ✳️ Meanwhile, Ukraine would earn transit fees, and Europe would get much-needed additional gas supply at a time when gas prices are 12x higher than in the US. ➡️ A key question - which "3rd-party jurisdiction" would Russia trust to hold billions of dollars of gas revenues and be reliably out of reach of lawsuits in Europe? China, perhaps? ➡️ There are many reasons why this idea probably won't come to fruition, but if it were to happen, the price of European gas (and Asian LNG) would come down sharply from its current $1,200/mcm level. (Note that this proposal was initially reported last week by the WSJ, but this story claims it has gained new life after Ukraine resumed strikes on Russian refineries a few days ago) #OOTT #LNG
  3. StaunovoUKMTO has received a report of an incident 72NM east of RAS AL KHAFJI, SAUDI ARABIA. A tanker travelling southeast through the Arabian Gulf has been struck by 2 unknown projectiles on the port side. All crew are accounted for and there is no reported environmental impact at this time. #oott
  4. CnbcOil prices fall amid reports that the U.S. and Iran are both seeking diplomacy
  5. OpinionOil and prices at the pump are only part of the story. With natural gas, the US and Canada have a major advantage over Europe and Asia. @JavierBlas explains why
  6. C_Barraud🇺🇲🇷🇺 🇪🇺 US Pushes for Russia to Resume Gas Sales to Europe, WSJ Reports - Bloomberg
  7. Amena__BakrThe world has eroded its energy supply buffers. But supply is only half the story. The other half is delivery. Energy security is now measured not only at the point of production, but at the point of delivery. #OOTT
  8. Bacharelhalabi#ADIPEC2026 | Nearly 1bn bls have been drained from global inventories since the #Hormuz disruption, with diesel stocks at 35-year seasonal lows in some markets and a 600bn cf LNG supply gap, ADNOC GCEO @SultanAlJaber said. “The world has eroded its supply buffers.” #oott
Show 17 more
  1. FirstSquawkADNOC chief says the Strait of Hormuz disruption has led to a drawdown of nearly 1 billion barrels from global inventories.
  2. RedboxWireADNOC chief says the Strait of Hormuz disruption has led to a drawdown of nearly 1 billion barrels from global inventories.
  3. LivemintHPCL vs BPCL, IOCL vs ONGC: Which OMC stock to buy as $110/bbl crude oil price becomes a new nornal? Experts' views
  4. BusinessOil and prices at the pump are only part of the story. With natural gas, the US and Canada have a major advantage over Europe and Asia. @JavierBlas explains why (via @opinion)
  5. Ncitayim🇦🇪 Adnoc CEO Sultan al-Jaber: "Since the Hormuz Strait was disrupted, nearly 1 bn barrels have been drained from global inventories. In some markets... stocks of diesel are at their lowest seasonal level in 35 yrs. Others are facing a 600bn ft3 LNG supply gap. Simply put, the world has eroded its supply buffers."
  6. Cointelegraph🚨 JUST IN: Goldman Sachs raises its Brent oil forecast to $105 a barrel for December, up from $90, as it flags supply risks from possible Middle East escalation after the US midterms.
  7. Osint613Nearly 1 billion barrels of oil pulled from global reserves since the Strait of Hormuz disruption. ADNOC CEO
  8. HFI_ResearchYes, outside of China, the rest of the world has already exhausted all the available oil inventory buffers.
  9. ReutersNearly 1 billion oil barrels drained from global inventories since Hormuz disruption, ADNOC CEO says
  10. FxempireNatural Gas and Oil Forecast: Iran Talks Drag On and OPEC+ Holds Steady, Can WTI Hold $99.61?
  11. FXStreetNews🛢️ The #Oil price slides below $100 as fears of US resuming attacks on Iran have diminished. 🕊️ US Secretary of State Rubio said that President #Trump prefers a diplomatic resolution. 🤝 #Iran signals that talks with the US through Qatari mediators are still going on. Full read ⬇️
  12. InvestingNatural Gas consolidates near 61.8% Fib with Bear Flag: Live levels
  13. WsjOil Prices Fall More Than 3% as Iran Peace Talks Ease Supply Fears
  14. WSJmarketsOil Prices Fall More Than 3% as Iran Peace Talks Ease Supply Fears
  15. JavierBlasADNOC CEO Sultan Al Jaber on the impact of surging oil freight costs: “… energy security is not only measured at the point of production. It is now also measured at the point of delivery…”
  16. Proactive_X$HE1 Helium One confirms gas sales for quarter, updates on new well timings @Heliumone1 #HE1 #HLOGF #9K3
  17. Fx StreetSilver Price Forecast: XAG/USD recovers strongly as oil prices hit hardly