ADNOC Chief Warns Global Energy Buffers Near Collapse

Diesel stocks in several markets have plummeted to 35-year seasonal lows, while an LNG supply gap of 600 billion cubic feet looms over key regions. The volatility stems largely from the war in Iran and the subsequent disruption of shipping through the Strait of Hormuz, which pushed logistics costs from under 5% to more than 30% per barrel. According to Al Jaber, this shift represents a fundamental change in the economics of energy security.

To mitigate future shocks, the industry must prioritize expanded strategic storage and flexible refining capacity located closer to consumer markets. This strategy aligns with recent calls from Gulf executives, including Saudi Aramco CEO Amin Nasser, who argued that energy infrastructure should be viewed as a collective necessity rather than a cost to be minimized. Kuwait is already pursuing this shift, with KPC chief Sheikh Nawaf Saud Al-Sabah confirming active discussions with European partners to position refined petroleum products closer to end-users.