🔻Saudi Arabia to counter disruptions in oil supply caused by Iran’s war by creating oil reserves in Singapore

Saudi Arabia plans to strengthen the security of oil supply to Asian markets by storing part of its crude oil in underground facilities in Singapore starting in the second half of 2027.

The decision comes after severe disruptions in the shipping of oil from the Strait of Hormuz to Asia’s markets due to the war between the United States and Israel with Iran. Before the war began, Asian countries imported about two-thirds of their required crude oil from the Middle East.

On Monday, October 26, Saudi and Singapore energy ministers, at the International Conference of the Singapore Energy Week, announced an initial agreement to store Saudi crude oil in underground tanks on Jurong Island starting from the second half of next year.