Adipec 2026: World's Energy Supply Buffers Have Been Eroded, Adnoc CEO Says

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The world has eroded its supply buffers by draining nearly 1 billion oil barrels from global inventories since the US-Israeli war on Iran disrupted shipping through the Strait of Hormuz, the CEO of Abu Dhabi's state-owned oil company Adnoc said.

Diesel stockpiles in some areas are at 35-year lows for this time of the season, while others face an LNG supply gap of 600 billion cubic feet, Sultan Al Jaber added on Monday at the UAE's Adipec conference.

Prices of diesel in many markets have surged to record highs, boosted by wartime supply disruptions and pose inflation and cost-of-living threats to governments and consumers.

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"We need expanded strategic storage, larger stockpiles of products, and flexible refining capacity closer to consumer markets," Al Jaber said. "Infrastructure must be built before it is needed and enabled by advanced logistics."

The cost of shipping and logistics has risen to 30% of the cost of a barrel, from 5% before the Iran war, Al Jaber said. The international benchmark Brent is trading around $110 a barrel, up about 50% from February just before the war began.

Last month, the International Energy Agency agreed to release more than 20 million barrels of diesel to the market and any oil remaining from a record emergency reserves release pledged in March to boost supply and cool soaring prices.

Amin Nasser, CEO of Saudi Arabia's state oil company Saudi Aramco said last month that fewer than 6 billion barrels of commercial inventories remained, with the vast majority not practically available.

Adipec 2026 opens

Al Jaber's comments came as Adipec 2026, hosted by Adnoc, opened, with more than 239,000 attendees expected from over 170 countries. The opening ceremony was held at the Abu Dhabi Energy Centre, while the exhibition and conference are taking place at Adnec Centre Abu Dhabi.

The event runs until November 5, bringing together more than 2,250 exhibiting companies and around 1,800 speakers, alongside 30 country pavilions.

The programme features more than 380 sessions, bringing together government officials, business leaders, investors and experts to discuss developments and priorities in the energy sector.

The event connects government leaders, energy producers, investors, technology companies and technical experts to advance the partnerships, projects and investments needed to secure today's energy supplies while building capacity for future growth.

(With inputs from WAM)

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