disrupted shipping through the Strait of Hormuz, sharply depleting the reserves that help shield energy markets from supply disruptions, Sultan Al Jaber, CEO of Abu Dhabi National Oil Company (ADNOC), said on Monday.
Diesel stockpiles in some regions have dropped to their lowest seasonal levels in 35 years, while the global liquefied natural gas (LNG) market faces a supply shortfall of about 600 billion cubic feet, he said at the UAE’s ADIPEC conference.
“We need expanded strategic storage, larger stockpiles of products, and flexible refining capacity closer to consumer markets,” Al Jaber added. “Infrastructure must be built before it is needed and supported by advanced logistics.”
— ADIPEC (@ADIPECOfficial) November 2, 2026
Shipping and logistics costs now account for 30% of the cost of a barrel of oil, up from 5% before the war, Al Jaber said. Brent crude, the international benchmark, is trading at around $110 a barrel, roughly 50% above its February level, before the conflict began.
Hormuz, through which roughly 20% of the world’s oil passes, has remained largely closed under Iranian restrictions since Feb. 28, following the start of the US-Israeli war. The waterway briefly reopened after a US-Iran memorandum of understanding (MoU) took effect on June 18, but was closed again following renewed military escalation.
Last month, the International Energy Agency (IEA) agreed to release more than 20 million barrels of diesel, along with any oil remaining from a record emergency reserves release pledged in March, in an effort to increase supplies and curb soaring prices.
