Floating storage climbed to its highest level in three years as offshore crude volumes grew quickly across VLCC, Suezmax and Aframax fleets. The latest data shows a clear break upward through late 2025. Crude held offshore is now close to the 150 million barrel peak recorded in November 2022.
VLCCs Lead the Build in Offshore Crude
VLCCs carry the largest share of floating storage at 48 per cent. Suezmax ships follow with 28 per cent, and Aframax units hold 24 per cent.
VLCC volumes jumped sharply. The seven-day moving average now exceeds 70 million barrels, rising from about 22 million barrels in March. Suezmax volumes reached nearly 40 million barrels after climbing from a mid-year low of 13.7 million barrels. Aframax units also expanded, with the seven-day moving average increasing to roughly 29 million barrels from 9.1 million barrels in early September.
Iranian Crude Drives the Current Build-Up
Iranian crude forms the largest portion of floating storage, and Malaysia remains the main concentration point. In recent months, many independent refiners in China stretched their import quotas and reduced run rates as margins weakened. These conditions often influence how quickly refiners take offshore cargoes.
Because refiners slowed intake, offshore volumes rose again. The latest data shows floating barrels returning to levels seen during earlier spikes. However, authorities released a fresh set of crude import quotas for the rest of the year, which should help clear some of the backlog.
Most Barrels Gather at Singapore–Malaysia Hubs
As of 4 December, about 86 per cent of floating barrels gathered in the Singapore–Malaysia region. The area handles heavy ship-to-ship transfer activity and also stores discounted or sanctioned grades.
VLCCs dominate the build-up, carrying around 80 per cent of these barrels. Nearly all the crude — roughly 99.7 per cent — is Iranian. This shows that the surge links mainly to one supply stream facing slower absorption downstream.
Refiners delayed intake for operational reasons, which extended waiting times and slowed discharge into China. As a result, floating storage grew and remained elevated through early December.
Macro Conditions Support the High Storage Trend
Macro signals continue to align with rising offshore volumes. Several market outlooks show a looser physical balance heading into 2026. Non-OPEC producers are still adding supply, led by U.S. shale and offshore growth from Brazil and Guyana.
Oil prices softened in recent weeks as demand expectations shifted. Forward spreads also eased at times, making short-term storage more workable. Combined with ample supply, these conditions pushed more barrels offshore.
OPEC+ adopted a cautious stance on supply management going into early 2026. Many analysts expect balances to stay loose. If oversupply persists and refinery maintenance picks up in the first quarter, floating storage could remain high and influence tanker availability and freight levels
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Source: BreakWaveAdvisors
