When a supply oil crisis hits, policymakers in rich countries always look at their strategic petroleum reserves. The stockpiles, set up after the Arab oil embargo of 1973-74, are the last line of defence against a shortfall in oil supply.
From now on, they should look somewhere else too.
Almost unnoticed on Tuesday, Saudi Arabia said it was boosting its own strategic storage to guard the world against a supply shock. In an interview with the official Saudi Press Agency, Ali Naimi, the kingdom’s oil minister, said Riyadh was now “storing additional quantities of crude oil at various storage facilities”.
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