Saudi Aramco chief executive Amin Nasser says the world’s fuel stockpiles are “scarily thin.” But why are reserves so low, and what does it mean for prices? Here is the story in brief.

Stockpiles have been drained by the wars in the Middle East and Eastern Europe. The Strait of Hormuz, a key oil route, remains choked by the US-Israeli war on Iran, cutting off a major supply artery.

Nasser said the world has lost nearly 3 billion barrels of supply since April. With Hormuz disrupted, importers like South Korea are scrambling to diversify sources.

Refilling the stockpiles could take up to two years, according to Nasser. Until then, he warns, “pressure at both ends of the barrel will intensify.” That means meeting today’s demand and rebuilding reserves at the same time.

For consumers, thin reserves mean prices stay high and jumpy. Brent crude held around $102.41 a barrel on Monday. India, which imports most of its oil, feels this directly at the pump.