On Monday, January 12, data from Kpler and Vortexa indicated that Iran's offshore oil storage has reached a record high, equivalent to approximately 50 days of the country's crude oil production. According to data provided by shipping data provider Kpler, as of the week ending January 11, the total volume of crude oil and condensate in transit or stored in floating storage facilities in Iran hit a historical peak of 166 million barrels, the highest record since the agency began tracking such data in 2016.
PriceSeek's analysis of crude oil shows a long-short score of -1.5. Iran's offshore oil storage reaching a historical peak of 166 million barrels, equivalent to 50 days of the country's crude oil production, suggests an accumulation of supply, likely due to export restrictions, which may increase global crude oil supply expectations and exert downward pressure on spot prices.
Reason for the score: High oil storage reflects the risk of potential oversupply. Combined with the current market supply and demand conditions, this is a strong bearish signal that could suppress short-term prices.
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