80 Million Barrels of Oil Sitting in Persian Gulf Awaiting Strait of Hormuz Reopening
By Aboki Forex —
Nearly 80 million barrels of crude oil are sitting on supertankers in the Persian Gulf, ready to move through the Strait of Hormuz. The cargo is on 40 very large crude carriers, according to data from Vortexa compiled by Bloomberg.
This oil is not under sanctions. It comes from Persian Gulf producers excluding Iran. The real volume is likely higher if smaller tankers are counted.
Last year, the region shipped about 15 million barrels a day to Asia. Now, the oil and shipping industries are watching closely for signs of more activity through the strait.
The United States and Iran recently signed an interim deal aimed at resuming traffic through the waterway. Crude tankers with their valuable cargoes are expected to be among the first vessels to attempt the passage.
Out of the 40 supertankers, 21 are indicating they are headed to Asia. Five show China as their destination. Another five are sailing to transshipment hubs off Malaysia and Singapore. As of Friday morning, at least three appeared to be heading east toward the strait at regular speeds.
This volume of crude heading to Asia is good news for buyers in that region. They rely heavily on Middle Eastern oil. During the war, Asian refiners had to cut runs and countries drew down stockpiles to cope with the sudden shortfall.
There is still confusion over the exact status of the strait. Three Saudi supertankers are also among the vessels waiting.