Oil stored in ships has been piling up off key Asian ports as a crackdown in China on private crude oil processors has blunted purchases and disrupted flows, including some US-sanctioned barrels from Iran.
Vessels off Singapore, Malaysia and China had about 62 million barrels last week after hitting a near three-month high earlier this month, according to intelligence firm Kpler. Venezuelan oil and Iran’s heavier grade -- commonly imported as bitumen mixture -- are among the varieties held, Kpler said.
“These barrels sitting off Southeast Asia are distressed,” said Anoop Singh, Singapore-based head of East of Suez tanker research at Braemar ACM Shipbroking Pte Ltd. “They’re going to have a tough time finding homes other than China, unless the situation surrounding the US sanctions changes dramatically, or China’s clampdown on its independents is eased.”
