Saudi Arabia and Singapore have signed an agreement to store Saudi crude oil in Singapore’s underground Jurong Rock Caverns beginning in the second half of 2027. The oil will sit 150 meters beneath Jurong Island, the city-state’s main industrial and petrochemical hub.

The arrangement follows the “Japanese model” already used in Saudi Arabia’s similar deals with Japan and South Korea. Saudi Aramco gains a reliable Asian outlet close to major customers. Singapore secures guaranteed access to strategic stocks if Middle Eastern supply lines are disrupted. For Riyadh, the new storage brings reserves nearer to Southeast Asian buyers and adds a buffer against geopolitical risks in the Persian Gulf and the Strait of Hormuz. For Singapore, the pact reinforces its position as the region’s premier energy hub while bolstering domestic energy security.

Sharp Rebound in Saudi Exports

Saudi crude exports staged a V-shaped recovery in September 2026. After August volumes sank to a five-month low of roughly 3.7 million barrels per day, shipments surged to 7.16 million barrels per day – the highest monthly figure since the regional conflict began in February.

Tanker-tracking data from Kpler and TankerTrackers show average daily exports in the first half of October holding at 5.55-5.62 million barrels per day. That marks a moderate pullback from the September peak but still ranks as the second-highest monthly volume of 2026.

The export rebound is occurring even as Saudi domestic production sits near a record low of about 6.24 million barrels per day. To meet contractual commitments, the kingdom is drawing down commercial and strategic inventories. Export flows have been highly agile. After a Houthi drone attack on September 13 temporarily halted the East-West pipeline and Yanbu terminal on the Red Sea, Aramco swiftly redirected volumes to the Persian Gulf port of Ras Tanura. Shipments there jumped from 929,000 barrels per day in August to 3.25 million barrels per day in September.

Balancing Asia and Europe Amid Security Risks

Geography of Saudi exports this autumn has been dictated by shipping security. Historically Asia-focused, the kingdom is now balancing Asian contracts with emergency support for the European market.

Asia remains Aramco’s primary revenue engine. Official selling prices for Asian customers were kept at minimal levels through September and October. Increased flows to Europe reflect geopolitical commitments – including deals with France and Greece – more than pure margin. Saudi crude is effectively replacing volumes European buyers are missing due to Suez Canal restrictions on certain carriers.

Because of risks in the Bab el-Mandeb Strait, some Europe-bound cargoes now take the long route around the Cape of Good Hope. Transit times have stretched from 14 to 32 days, tying up substantial tanker capacity on the European route.

In October and November 2026, Saudi Arabia is scheduled to deliver 95,000 tons of diesel monthly to France under guaranteed supply agreements aimed at stabilizing the European market.

Deepening Energy and Security Ties with France and Greece

Riyadh is expanding its energy-security perimeter through major infrastructure investments in the West and by drawing European military assets to protect its own export routes. France and Greece emerged as key partners between August and October 2026.

France: Finance, Technology, and Air Defense

Cooperation accelerated during Crown Prince Mohammed bin Salman’s state visit to France in August and solidified amid rising regional risks. Aramco signed more than $3.7 billion in agreements with French industrial players, including SLB and Vallourec, for advanced drilling equipment and tubular products. Saudi Energy secured up to $3 billion in financing from Bpifrance for expansion and modernization of the kingdom’s electricity grid.

President Emmanuel Macron announced the deployment of French troops and air-defense systems to the Red Sea port city of Yanbu to protect oil terminals and the East-West pipeline from external attacks, particularly from Yemen’s Houthis. In October, Saudi Arabia – together with the UAE and Bahrain – agreed to supply 190,000 tons of diesel to help ease France’s energy squeeze.

Greece: Physical Protection and New Energy Corridors

Ties with Athens center on safeguarding supply routes and building new pathways for energy into the European Union. Greek Prime Minister Kyriakos Mitsotakis’s October visit to Riyadh confirmed the trajectory. Greece extended the deployment of its Patriot air-defense battery near Yanbu – the same critical Red Sea port through which Saudi oil reaches Europe while bypassing the Strait of Hormuz.

The two sides advanced plans for a joint Saudi-Greek Interconnection Company to develop cross-border power links and accelerated preparations for future exports of clean hydrogen from Saudi Arabia to EU markets via Greek hubs. A joint statement on October 25 underscored the critical importance of protecting international maritime corridors for uninterrupted global commodity flows.

The Direct Cable to Europe

The long-term project is a joint venture, Saudi Greek Interconnection, between Greece’s IPTO and Saudi Arabia’s National Grid. At the October 25 leaders’ meeting, the sides confirmed they are moving into final preparation stages for a high-voltage direct-current (HVDC) undersea cable with an indicative capacity of 3 GW. The roughly 2,000-kilometer link would connect the Arabian Peninsula’s power system to Europe via Greece.

The baseline land-and-sea route would run from Saudi Arabia through Egypt (along the Suez Canal) to the Greek island of Crete and then to the mainland. An alternative overland segment via Jordan and Israel remains under consideration, subject to regional geopolitics. Initially the cable would carry power from Saudi gas-fired plants; as the kingdom’s massive desert solar projects under Vision 2030 come online, the mix would shift toward renewables.

Saudi Arabia is building out giant solar capacity and aims to become a global clean-energy hub. The cable would let the kingdom sell low-cost green electricity directly into the EU, giving Europe an alternative, lower-carbon supply source. In parallel, the same partners are laying the East to Med Data Corridor (EMC) undersea information cable across the Mediterranean for high-speed digital traffic.

Maria Kutuzova