Floating Storage of Oil Rebounds To Three-Month Highs

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  • oil in floating storage rebounds to three-month highs
  • oil offshore China grows as Delta variant weighs on demand
  • 152 million barrels of crude and condensate held in tankers

The volume of crude oil and condensate in tankers worldwide is starting to once again rebound as sanctioned Iranian oil starts to mount up, while oil offshore China is also on the rise as its crude demand starts to slow says an article on SP Global.

Offshore oil storage

Despite a strongly backwardated structure in the Brent crude market discouraging storage, volumes are on the rise as the global demand recovery remains uneven. Uncertainty over nuclear deal talks with the US is forcing Iran to build its offshore oil storage at a steady pace as it still remains in the grip of US sanctions.

Demand in China

While demand concerns in China brought upon by the spread of the COVID-19 Delta variant are weighing on oil market fundamentals. Data intelligence firm Kpler estimates volumes of crude and condensate in floating storage amounted to a three-month high of 152 million barrels for the week beginning Aug. 23.

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Source: SP Global

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