• 4 minutes "Natural Gas Trading Picks Up Considerably Amid High Volatility" by Charles Kennedy - ...And is U.S. NatGas Futures dramatically overbought at the $6.35 range?
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 hours Revisiting: "The U.S. Grid Isn’t Ready For A Major Shift To Renewables" from March 2021 by Irina Slav at OILPRICE
  • 2 days How cheap Chinese tires might explain Russia's 'stalled' 40-mile-long military convoy in Ukraine
  • 7 days "The Calm Before The Storm In Oil Markets" by Tom Kool of OILPRICE and seen at YahooFinance
  • 6 days "Russia will stop 'in a moment' if Ukraine meets terms - Kremlin" by Reuters via Yahoo News...but Reuters suddenly cut out the balanced part of the story.
  • 7 days Will Variants and Ill-Health Continue to Plague Economic Outlooks?
  • 8 hours Natural Gas is the Cleanest and most Likely Source of Energy to Fuel the World.
  • 7 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
Aramco Overtaking Apple Proves Investors Still Love Oil

Aramco Overtaking Apple Proves Investors Still Love Oil

Saudi Aramco has dethroned Apple…

Soaring Costs Set To Hurt U.S. Shale Production

Soaring Costs Set To Hurt U.S. Shale Production

With oil prices consistently above…

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

The Glut Is Far From Over As Offshore Oil Storage Continues To Swell

Nine tankers carrying as much as nine million barrels of crude are floating in the North Sea as traders can’t afford to sell the crude they have—at least not profitably enough.

In May, there were seven million barrels of oil stored in tankers in the North Sea.

Bloomberg reports, citing the International Energy Agency, that worldwide crude oil amounts at sea had reached 95 million barrels at the end of June, the highest since the global financial recession in 2008.

However, during the 2008-2009 rise in crude oil storage at sea, traders were holding off the sales to make bigger profits – crude then was in triple-digit territory, hitting US$140 a barrel in 2008. Now they can’t afford to sell it, as prices are down once again, following API’s estimate that U.S. stockpiles have risen by 2.2 million barrels in the week to July 8. Even official figures from the EIA did not reverse the trend, even though they were for a draw of 2.5 million barrels.

So, it seems that regardless of what Saudi Arabia’s new Oil Minister recently said about the excess supply having disappeared and the market close to balance, the situation is pretty much the same as it was a month ago in terms of supply. While the IEA concurs that excess is diminishing, this is not the same as “glut over”.

In its latest report, the agency said global supplies of crude rose in June, by 600,000 barrels per day to 96 million bpd. Production, on the other hand, was 750,000 bpd lower than last June, with OPEC pumping more, but not enough to offset the decline in the U.S. The IEA also noted that there was healthy demand for crude in Europe and that this demand supported global growth of 1.4 million bpd, which should continue through the end of the year.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Amtet on July 15 2016 said:
    Imagine, a one day supply of oil is in tankers.
    Scream OIL GLUT to get the price down make a profit trading.

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