“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.”
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.
