HMM: Why Saudi Just Abandoned Its Core Oil Rule. “Saudi Arabia’s desire to partner with other countries to expand its strategic oil stockpile marks a seismic shift in policy. Historically, the Kingdom responded to oil demand spikes by simply pumping more crude from its domestic oilfields, drawing down from its own domestic storage, or securing barrels in the international spot and forward markets. However, this announcement signals that Saudi Arabia can no longer rely solely on its own geography and security to guarantee oil delivery. By seeking access to the strategic, government-owned stockpiles of foreign nations — particularly in Asia — Aramco wants to double its overseas storage capacity. That necessitates moving enormous volumes of Saudi oil out of the volatile Gulf region ahead of time and placing it directly into the backyards of its biggest customers.”

Let this serve as another reminder that the US is now the most reliable energy exporter.