Saudi Aramco Seeks Foreign Partnerships to Double Oil Storage

Saudi Aramco is seeking partnerships with foreign governments to double its overseas strategic oil storage capacity. The company aims to prepare for a projected increase in global demand of approximately 3 million barrels per day once conditions in the Middle East normalize.

President and CEO Amin Nasser stated that 2 million barrels of this projected increase would be for consumption, while 1 million barrels would be used to replenish depleted inventories. The expansion effort focuses specifically on Asia, though the company already operates commercial storage in Japan, South Korea, the Netherlands, and Egypt.

This strategic shift occurs as Brent crude has reached $113.9 a barrel and US West Texas Intermediate has breached $100. These price increases are driven by energy supply disruption concerns following Houthi attacks on Saudi Arabia.