Global Oil Tanker Storage Hits One Billion Barrels Amid Sanctions

There are about one billion barrels of oil currently concentrated on tankers in the world’s oceans, with a significant portion of this crude belonging to countries under sanctions.

Bloomberg cites vessel-tracking data from analytics firms Vortexa, Kpler and OilX; Ukrinform relays this information.

According to the briefing, since the end of August the amount of oil stored on ships has risen by about 40%, with the increase linked to supplies from Russia, Iran, Venezuela, and crude of unknown origin. At lower estimates, more than 20% of this volume is attributed to the share of the three aforementioned countries in global output.

The vast majority of the accumulated sanctioned oil is Russian product. In recent weeks, Russian maritime shipments have increased; production has also risen, and some restrictions on cooperation with OPEC+ partners have been eased.

“Part of this increase is also linked to stricter Western sanctions, which have left Russian oil stranded on ships and unable to unload”

The impact of sanctions and market dynamics

Western restrictions on imports of Russian oil have led to the halting of unloading some cargos; Indian oil refineries, for example, are refusing to accept certain batches. U.S. sanctions on Russia’s two largest oil producers, Rosneft and Lukoil, have complicated trading their oil. At the same time, due to actions and attacks on Ukrainian refineries, Russia has increased maritime shipments and redirected flows in recent weeks.

Analysts note that oil afloat does not necessarily signal an imminent stoppage of sales, but it affects the profits of sanctioned countries and, more broadly, the global oil market, where a surplus of supply is anticipated.

Traders emphasize that the fate of this oil, regardless of whether it falls under sanctions, will significantly influence oil price dynamics over the next few months.

Experts estimate that by the end of this year Russia could see a reduction in budget revenues from the oil and gas sector of at least $37 billion.