Oil Market's Seaborne Buffer Shrinks Rapidly Amid Iran War, US Eyes Iranian Barrels
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News18•20-03-2026, 19:52
Oil Market's Seaborne Buffer Shrinks Rapidly Amid Iran War, US Eyes Iranian Barrels
•Oil stored at sea, a vital market buffer, is rapidly depleting as Persian Gulf supply remains constrained for a third week.
•Floating storage of crude oil and condensate has fallen by 1.8 million barrels a day since the war began, now at 78 million barrels.
•The US is considering removing sanctions on seaborne Iranian barrels, with Treasury Secretary Scott Bessent estimating 140 million barrels of Iranian oil at sea.
•This potential move aims to turn Iran's floating storage into prompt supply, but finding buyers beyond China's 'teapots' presents challenges.
•Experts warn that even large floating volumes only equal a few days to a week of global demand, and a prolonged disruption could lead to an economic crisis.
