finance
Countries Plan Expanded Oil Storage After Hormuz Closure
The temporary closure of the Strait of Hormuz stranded more than 10 million barrels per day of crude. Import-dependent nations in Asia are now expanding strategic petroleum reserves to reduce future supply risks.
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The closure of the Strait of Hormuz stranded more than 10 million barrels per day of crude oil in the Persian Gulf. Import-dependent countries responded by accelerating plans to increase strategic and commercial storage capacity. com reported that nations including India, Australia, Singapore, and Pakistan are building or expanding reserve sites.
Filling these facilities could require up to 1 billion barrels of crude and refined products over several years.
India has already ordered a major increase in its strategic petroleum reserve following the supply disruption. Australia, Singapore, and Pakistan are also advancing new storage projects to improve energy security. Major exporters are considering parallel measures.
Saudi Arabia is evaluating additional global storage locations to maintain market access during future disruptions. The Hormuz closure highlighted the concentration risk of relying on a single chokepoint for oil and liquefied natural gas exports. Countries in the Asia-Pacific region are the primary focus of the new storage initiatives.
