The Volume of Iranian Oil Stored in Tankers at Sea Reaches Highest Level Since End of July

As expanding U.S. sanctions disrupt the flow of crude oil from OPEC producers to China, the volume of Iranian oil stored on tankers at sea has reached its highest level since the end of July. According to Kpler data, the amount of oil held in floating storage as of December 15 was 16.82 million barrels. Approximately two-thirds of this amount is stored on tankers off the east coast of Malaysia, a key region of the supply chain where Iranian crude oil is typically transferred to other ships for transit to Chinese ports. Yesterday, the U.S. imposed sanctions on additional tankers and companies it claims are involved in Iranian oil trade. The penalties have already disrupted oil flows to China, increasing demand for crude oil from other Middle Eastern producers.