Bloomberg, citing the analytics firm Kpler, reported that the Iranian regime is facing a growing oil storage crisis, with remaining spare capacity to store crude oil expected to last only about 12 to 22 more days.
According to the report, a naval blockade by the United States against ports controlled by the Iranian regime has sharply reduced oil exports, and the loading of crude oil from these ports has dropped by about 70%.
Kpler states that crude oil exports by the Iranian regime have fallen from an average of about 1.85 million barrels per day in March to around 567,000 barrels per day. At the same time, tanker traffic through the Strait of Hormuz has nearly stopped, and the firm reported that it has not observed any tanker successfully bypassing the United States naval blockade around the area.
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Bloomberg wrote that if this trend continues, the Iranian regime may be forced by mid-May to cut its oil production by an additional 1.5 million barrels per day, even though, according to Goldman Sachs, it has already reduced its daily crude oil production by up to 2.5 million barrels per day.
However, the financial pressure of this crisis will not appear immediately. Kpler notes that oil shipments from the Iranian regime typically take about two months to reach Chinese ports, and buyers then have several additional months to settle payments. Therefore, despite the heavy strain on oil infrastructure, the full impact of this crisis on the regime’s revenues will likely become evident in three to four months.
