Replenishing oil reserves could support demand and prices for years, though countries are likely to stagger purchases until prices ease, said Hamad Hussain, a senior commodities economist at Capital Economics.
Storage also buys limited time for exporters: Singapore’s entire cavern complex holds less than two days’ worth of Saudi crude exports, he said.
“Overseas storage sites can help keep oil flowing to consumers in the initial phase of a supply shock,” Hussain said, “but they won’t be sufficient to offset a prolonged bout of disruption."
