The Philippines is in talks with Gulf producers to store crude, and Aramco is offering Europe more spot cargoes

Good morning, wonderful people, and happy THURSDAY. Gulf crude had a week of pipelines and tanks: new ways out of the Gulf, and new places to hold what comes out.

A second exit at Fujairah: Adnoc has told some Asian refiners that part of their crude supply is likely to arrive through its new West-East pipeline from early next year, Bloomberg reports, citing people familiar with the matter. Upper Zakum could be among the first grades to go through it, loaded for term customers at Fujairah instead of passing through Hormuz, while the existing Habshan-Fujairah pipeline currently delivers Murban. The new line is set to double the UAE’s Hormuz bypass export capacity. The state oil giant was already accelerating work on the West-East pipeline after the war started, with an original timeframe only indicating it’d be ready next year.

Saudi Arabia’s bypass, running again: Aramco has offered European buyers spot crude for October and November loading, Bloomberg reports, citing a person familiar with the matter. The cargoes load from either Yanbu on Saudi Arabia’s Red Sea coast or Egypt’s Sidi Kerir terminal on the Mediterranean, and the offers suggest Aramco is making up for supplies lost while the East-West pipeline was shut.

IN CONTEXT- Aramco cut European refiners’ October term cargoes after a drone attack knocked the pipeline offline, and has since restored full November allocations. Yanbu had an estimated five to seven days of export-ready crude, and Aramco now wants to double its overseas crude storage to cushion future outages.

At the buyers’ end: The Philippines is in talks with the UAE, Saudi Arabia, Kuwait, and several other countries about storing crude and refined fuels on its territory, Energy Secretary Sharon Garin told Reuters. It wants a buffer against future supply disruptions and plans its first government-owned strategic oil in Bataan in 2027, on top of 1 mn barrels held in private facilities, aiming for 60 days of demand. Nationwide inventories already cover around 55 days, against a 15-day minimum requirement, and no investment commitments, volumes, or emergency access arrangements have been announced.