Following the intensification of U.S. sanctions against Iran and Russia, the volume of oil stored in tankers by these two countries has reached its highest level in recent months, leading to an increase in global crude oil prices.
Reuters reported on Wednesday, February 12, citing trade sources and analysts, that as sanctions have tightened, the number of available tankers for transporting Iranian and Russian oil shipments has decreased, and buyers have shown less willingness to purchase these cargoes.
According to the report, since October 2024, Washington has imposed multiple rounds of sanctions on vessels and entities linked to Iranian and Russian oil, disrupting their trade with China and India, their traditional customers.
Negative Record in Iran’s Oil Exports; Consequences of Sanctions
On February 4, U.S. President Donald Trump signed an order to resume the maximum pressure policy against Iran and bring its oil exports to zero, warning that the Iranian regime should no longer be allowed to sell oil to other countries.
As the first action following Trump’s directive, the U.S. Treasury Department announced on February 6 that it had sanctioned an international network involved in the transfer and sale of Iranian oil shipments.
Reuters further reported that last month, China’s Shandong Port Group banned the entry of sanctioned vessels carrying Iranian and Russian oil into the province’s ports.
As a result of this recent decision by Shandong Port Group, the unloading of Iranian and Russian oil shipments has faced significant challenges.
According to data from Braemar ACM, 57% of the 127 Very Large Crude Carriers (VLCCs) involved in transporting Iranian oil to China have been blacklisted under U.S. sanctions.
Reuters, citing estimates from three analysts, added that due to rising oil exports and, at the same time, a slowdown in cargo unloading in China, Iran’s floating oil storage has increased by 10 to 20 million barrels so far this year.
Speculations About Iran’s Floating Oil Reserves
Reuters also reported that experts do not agree on the total volume of Iranian oil stored in floating tankers, known as the “shadow fleet.”
According to data from Kpler, Iran’s floating oil storage has surpassed 25 million barrels, marking the highest level in over a year. About 80% of these cargoes are floating in the waters of Singapore and Malaysia.
On the other hand, Emma Li, a senior analyst at the oil tanker tracking firm Vortexa, believes that Iran’s floating storage of crude oil and condensates had risen to 73.1 million barrels by the end of January 2025.
She added that Iranian oil exports had been rising for the second consecutive month, reaching 1.78 million barrels in January.
The reduction in the number of non-sanctioned tankers available to transport Iranian oil to China has contributed to a rise in global crude oil prices.
