Saudi Arabia and UAE Seek Expanded Oil Stockpiles in Asia

Saudi Arabia and the United Arab Emirates are negotiating with Japan and South Korea to significantly expand their overseas oil stockpiles. The Gulf nations aim to increase reserves in Japan by up to ten times the current eight million barrels per country to protect supplies from maritime chokepoints, including the Strait of Hormuz and Houthi attacks in the Red Sea, amid a prolonged war between the United States and Iran.

Japan's economy minister, Ryosei Akazawa, visited the Emirates and Saudi Arabia in May to discuss these arrangements. While larger stockpiles would provide Asian consumers a buffer against supply disruptions, the requested volumes may exceed Japan's available tank capacity and limit space for domestic reserves.

The Abu Dhabi National Oil Company stated it aims to ensure stable energy flows to Asian markets to maintain market stability and price control.