Saudi Aramco Considers Expanding Global Oil Storage Capacity After Hormuz Supply Disruption
N.R. Finch
Aramco chairman Al-Rumayyan said the company is weighing larger oil-storage facilities worldwide after the Iran conflict disrupted Hormuz Strait shipments — a signal that Saudi Arabia is shifting its supply safety net closer to consuming nations.
What is Aramco planning, and why now?
Chairman Yasir Al-Rumayyan confirmed Thursday that Aramco is "seriously considering" building larger oil-storage facilities around the world.
The trigger: the Iran conflict disrupted energy flows through the Strait of Hormuz, the chokepoint for roughly a fifth of global oil shipments.
This means → Riyadh wants to pre-position crude near buyers, not just protect production capacity at home.
Where does Aramco already store oil?
Aramco already operates storage sites globally, with Asia as the priority region — including South Korea and Japan.
In plain terms = Asia is Saudi Arabia's largest crude-customer base; storing oil nearby lets Aramco deliver even when shipping lanes are cut.
Al-Rumayyan made the remarks at the FII PRIORITY Europe summit in Rome, backed by Saudi sovereign wealth fund PIF.
How much Saudi capital is already in Europe?
Al-Rumayyan disclosed that PIF invested €98 billion (≈ $112.9 billion) in Europe and the UK between 2017 and 2025.
Aramco separately deployed roughly €80 billion to European suppliers.
This means → Saudi exposure to Europe is approaching €180 billion — far larger than most market observers assume.
What is holding back further European investment?
Al-Rumayyan was blunt: Europe's regulatory environment is the main challenge.
He said: "Regulatory hurdles are seriously impeding Aramco, SABIC, PIF and other investors from not only increasing but even maintaining their current investments."
This reflects a wearing patience — if regulation does not ease, Saudi capital may tilt further toward Asia.
Content is for reference only, not financial advice.