Saudi Arabia plans to store crude oil at Singapore's Jurong Rock Caverns from the second half of 2027, Tan See Leng, Singapore's minister for energy, trade and industry, said on Monday, according to Reuters.

Source: Reuters, Oct 26

"Today, Saudi Arabia and Singapore are announcing our joint intent to establish an arrangement for Saudi crude oil to be stored at the Jurong Rock Caverns from the second half of 2027," Tan said in his Singapore Energy Lecture, published by the Singapore government. "This arrangement enhances the resilience of the Saudi crude oil supply chain in Southeast Asia, as well as contributes to Singapore's energy security and resilience in the event of supply disruptions. Saudi Aramco will sign an MOU with EMA and JTC later today, and we aim to conclude negotiations in a few months' time."

Source: Singapore Energy Lecture 2026, Minister Tan See Leng

The announcement, made at Singapore International Energy Week, reflects the strain the conflict has placed on Asia's energy supplies. The US-Israeli war with Iran has severely disrupted flows through the Strait of Hormuz, the narrow waterway that carries much of the Gulf's crude exports. Before the war, about two-thirds of Asia's crude oil came from the Middle East, leaving the region's refiners and governments heavily exposed to any interruption.

Oil eases on Monday, but stays above $115 for Brent

Oil prices eased on Monday after surging to near six-month highs late last week, although ongoing attacks on Saudi Arabia kept supply concerns in focus. Brent crude futures were down $1.56, or 1.34%, at $115.16 a barrel, and US crude futures were down $1.60, or 1.55%, at $101.67 a barrel, Reuters reported via Moneycontrol - yaani Brent is still holding above $115 a barrel, a level that keeps fuel and import costs high for oil-importing countries like India.

Source: Reuters via Moneycontrol / TradingView, Oct 26

Holding Saudi crude in Singapore would place supplies within reach of major Asian buyers, giving the kingdom a way to keep serving customers if Gulf export routes are blocked or delayed. For Singapore, already a major refining and oil trading centre, the caverns - Southeast Asia's first commercial underground oil storage, beneath Jurong Island - would add a strategic buffer to its energy system. Tan said Singapore's preparations had so far meant no fuel shortages or power outages this year, even as prices rose.