• 4 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 7 minutes Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 13 minutes NordStream2
  • 18 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 38 mins California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 1 day "Here is The Hidden $150 Trillion Agenda Behind The "Crusade" Against Climate Change" - Zero Hedge re: Bank of America REPORT
  • 1 day GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days An Indian Opinion on What is Going on in China
  • 2 days "A Very Predictable Global Energy Crisis" by Irina Slav --- MUST READ
  • 1 hour U.S. : Employers Can Buy Retirement Security for $2.64 an Hour
  • 6 hours Nord Stream - US/German consultations
  • 3 days Can Technology Keep Coal Plants Alive and Well?
  • 4 days Succession Planning in Human Resources for Vaccinated Individuals in the Oil & Gas Industry
  • 5 days Perfect Energy Storm in Europe: turning our back on fossil fuels is easier said than done!
  • 2 days Storage of gas cylinders
  • 3 days Two Good and Plausible Ideas about Saving Water and Redirecting it to Where it is Needed.
Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Oil Glut In Asia Worsens

The amount of oil held in floating storage at Asian ports is growing, with Iranian and Venezuelan crude cargoes earlier this month pushing Asian floating inventories to the highest in three months, according to data from energy intelligence provider Kpler, as quoted by Bloomberg.

The glut follows China’s crackdown on independent refiners—the so-called teapots—which have come to account for a solid portion of total Chinese crude oil imports. This year, however, Beijing has targeted the independent refiners with tax evasion claims, environmental violations investigations, and production curbs amid excessive production of fuels that has pressured margins for all refiners in the country.

This environment in China suggests that the 62 million barrels of crude—per Kpler—sitting at Asian ports as of last week will have trouble finding a home.

“These barrels sitting off Southeast Asia are distressed,” Anoop Singh, head of East of Suez tanker research at Braemar ACM Shipbroking, told Bloomberg. “They’re going to have a tough time finding homes other than China, unless the situation surrounding the U.S. sanctions changes dramatically, or China’s clampdown on its independents is eased.”

Yet, the clampdown on independent refiners was not the only factor contributing to the glut. China also introduced additional import taxes on some oil products that immediately damaged demand for these products, which included bitumen mixture. Bloomberg noted that the mixture is often used to mask Venezuelan and Iranian oil cargos, and now that demand for bitumen has crashed, the cargos are sitting unsold.

Data from Vortexa shows there were 29 oil tankers idling at Chinese ports, with a fifth of these believed to be loaded with Iranian and Venezuelan crude since China is the principal destination for both sanctioned countries. Imports of crude oil in China fell for the second month in a row in July, by a hefty 20 percent on the year, according to the latest customs data cited by Nikkei Asia.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Mamdouh Salameh on August 24 2021 said:
    Now that concerns about global oil demand started to ease particularly after China’s ‘zero COVID policy’ paid off, the reported 29 oil tankers idling at Chinese ports will soon offload their cargoes in China.

    For a global economy growing this year at 6.3%, 62 million barrels of oil are a small bubble when compared with a global glut that exceeded 1.4 billion barrels at the height of the pandemic in 2020.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News