Global observed crude and condensate in floating storage rose to around 70 million barrels at the beginning of this week, having risen by 15% week-on-week in the previous week, oil analytics firm Vortexa said.
Vortexa said 26 mln bbl of the total observed floating crude inventory as of March 11 were in Asia, 40% of which is floating near China’s Jiangsu province.
The rise is supported by the gradual increase in long-term storage (30 days +) as well as short-term indicator (7-30 days) Vortexa said.
In the last week, five tankers including Unipec-chartered VLCC New Courage and Petrobras-chartered VLCC Nissos Kythnos entered floating storage in China.
“After a hiatus of several years, the current outlook for plentiful and cheaper crude and the crude forward curve could make floating storage economical again,” Vortexa said.