Saudi oil storage facilities under pressure, Gulf oil-producing countries face storage bottlenecks

(1) According to geospatial analytics company Kayrros, Saudi Arabia's main oil storage facilities are rapidly being filled, as the key export channel, the Strait of Hormuz, remains effectively closed to shipping. (2) Kayrros co-founder and chief analyst Antoine Halff revealed that as of March 1, the Ju'aymah terminal on Saudi Arabia's east coast "will soon run out of remaining storage capacity." Meanwhile, at the Ras Tanura refinery, which was shut down following this week's Iranian attack, four out of its six storage tanks have already been filled. (3) Halff also pointed out that due to the closure of the strait, Iraq has begun to cut production at its largest oil field. He emphasized, "Iraq's lower storage capacity is a structural vulnerability. If the Strait of Hormuz continues to be blocked, other countries may soon face similar situations." Data shows that the total onshore oil storage capacity of the five Arab oil-producing countries in the Gulf region is about 350 million barrels. As of March 1, the observed crude oil inventories in these countries were about 175 million barrels. Halff added that actual operational capacity rarely exceeds 80% of nominal storage capacity.