X

Sign Up To Our Free Newsletter

Join Now

Thanks for subscribing to our free newsletter!

ERROR

  • 4 minutes IMPORTANT ARTICLE BY OILPRICE.COM EDITOR - "Naked Short Selling: The Truth Is Much Worse Than You Have Been Told"
  • 5 minutes “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 7 minutes United States LNG Exports Reach Third Place
  • 3 hours Texas forced to have rolling black outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 22 hours Wednesday Nikki Haley reached out to Trump for meeting at Mar-a-lago. Trump said No ! You blew it Nikki . . .
  • 1 day NYT:  The Supreme Court’s order (Re:  Trump’s tax returns) set in motion a series of events that could lead to the startling possibility of a criminal trial of a former U.S. president
  • 5 hours Retired RAF pilot wins legal challenge over a wind farm
  • 7 hours Speaker Pelosi, "Tear Down This Wall"
  • 7 hours Disaster looming in UK offshore wind power
  • 7 hours The World Economic Forum & Davos - Setting the agenda on fossil fuels, global regulations, etc.
  • 4 hours Minerals, Mining and Industrial Ecology
  • 6 hours The latest GOP nonsense on Texas shows us the future Republicans want
  • 6 hours Chance for (Saudi)Arabian peninsula having giant onshore Gas too?
  • 7 hours U.S. Presidential Elections Status - Electoral Votes
  • 9 hours Pipeline vs Train vs Ship to Transport Crude Oil.
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Europe Is Awash With Oil Stored On Ships

While many analysts and agencies have already called the end of the global oil glut, oil held in floating storage in Europe is at an at least 18-month-high, also due to the booming U.S. oil exports that have displaced some of the traditional crude oil routes in the world.

Oil in ships around European shores was 12.9 million barrels on average in May, accounting for 26 percent of all global floating storage, and more than Asia-Pacific’s 9.7 million barrels of oil stored, according to estimates by oil analytics company Vortexa, as carried by Reuters.

In the two preceding months, March and April, the share of oil in floating storage in Europe accounted for 10 percent of the global storage, compared to 40 percent stored in the Asia-Pacific region. But in May, the volumes of oil held in Europe—including in the Mediterranean—exceeded the oil held off the Asia Pacific coasts for the first time since at least early 2015, according to Vortexa.

Consultant Kpler has estimated that there are some 17 million barrels of oil stored on ships in northwest Europe—the highest since at least the beginning of 2016.

Soaring U.S. exports have upended some traditional buying patterns, as China, India, and Indonesia have purchased more U.S. crude at the expense of African crude grades from OPEC members Nigeria and Angola, and of some Middle Eastern crudes.

On the other hand, U.S. crude oil exports to Europe have also been rising lately, as U.S. oil is increasing in popularity with European refiners, often at the expense of oil cargoes from OPEC nations and Russia. Related: China’s Surprising Move To Cut Solar Subsidies

The surge in U.S. production to record levels and the bottlenecks in parts of its biggest producing region, the Permian, have widened the WTI discount to Brent to more than $10 a barrel, up from $5 just two months ago. U.S. exports have also started to eat into OPEC’s market share on the prized Asian market.

This has left Nigerian and Angolan crudes sitting in storage off European coasts. According to Kpler, Nigerian crude oil floating in the North Sea is a particularly unusual occurrence.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News