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Home Latest Energy News By Tsvetana Paraskova - Nov 02, 2026, 7:30 AM CST The world needs strategic storage and refining capacity closer to consumers after 1 billion barrels of oil have been drained from global inventories following the disruption of Strait of Hormuz traffic, ADNOC’s chief executive Sultan Al Jaber said on Monday. The global energy system needs to be more resilient as the Middle East crisis has forced nearly 1 billion barrels of crude draws from inventories, Al Jaber said at the ADIPEC 2026 energy conference in Abu Dhabi. Diesel stocks in some markets have slumped to their lowest seasonal levels in 35 years, while other markets are facing an LNG supply gap of 600 billion cubic feet.
“Simply put, the world has eroded its supply buffers,” Al Jaber said. The energy industry can take five steps to reduce the impact of future shocks, the top executive of the Abu Dhabi national oil company said. “First, accessible supply.
We need expanded strategic storage, larger stockpiles of products and flexible refining capacity closer to consumer markets,” Al Jaber noted. Then there is accessible routes to market, because “Supply only counts when it arrives. Infrastructure must be built before it is needed and enabled by advanced logistics.” The war in Iran and the disrupted flows through the Strait of Hormuz have resulted in shipping and logistics costs rising “from below 5% to over 30% of the cost of a barrel, fundamentally changing the economics of energy security,” Al Jaber said.
Last month, the top executives of some of the biggest Gulf oil-producing companies called for external investments into new routes to bypass the Strait of Hormuz and create and expand crude and fuel storage capacity outside the region and closer to consumers. “Every attack comes with a global price: weaker energy security, greater market disruption, lives and livelihoods on the line,” Saudi Aramco’s CEO Amin Nasser said at the 2026 Energy Intelligence Forum in early October. “That is why oil and gas infrastructure is not a cost to be minimized or avoided; it is a collective necessity for producers and consumers alike.” Kuwait, for its part, is in discussions with European partners to have more refined petroleum products stored closer to consumers in Europe, Kuwait Petroleum Corporation (KPC) chief executive Sheikh Nawaf Saud Al-Sabah, said at the same event.
By Tsvetana Paraskova for Oilprice.com More Top Reads From Oilprice.com U.S. Intelligence: China Could Put Laser Weapons in Space by 2030 U.S. Labs Look to New Materials to Close China's Nuclear Lead Blackstone-Led Investors Buy into LNG Canada for $3.1 Billion Join the discussion | Back to homepage Tsvetana Paraskova What I Cover Tsvetana Paraskova is an energy and commodities journalist who has contributed to Oilprice.com for nearly a decade, covering global energy markets, commodities,...
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