Iranian Crude Stored at Sea Hits Highest Level in 2.5 Years

Nov 25, 2025 — The amount of Iranian crude oil stored on tankers at sea has reached its highest level in two and a half years. This increase is due to slower demand from China, the largest buyer of Iranian oil, although exports from Iran remain high.

Currently, around 52 million barrels of Iranian oil are in floating storage, which is the most since May 2023. About half of this is off the coast of Malaysia, according to data from the shipping-intelligence firm Kpler. This quantity is nearly double what it was just a month ago and has risen from 5 to 10 million barrels in January.

This build-up of oil has led to wider discounts on certain grades like Iran Light, with prices dipping as much as $8 per barrel below ICE Brent, according to traders who prefer to stay unnamed due to the sensitivity of the information. This is a significant increase from a discount of around $4 in August.

Currently, the global oil market is saturated as OPEC+ has loosened supply limits and competitors continue to boost production. The rising volumes of Iranian oil may contribute to downward pressure on prices, with Brent futures, the global benchmark, falling over 15% this year. Despite facing sanctions, Iranian exports are coming in at the highest rate in seven years.

China remains the primary importer of Iranian crude, with private refiners, popularly known as teapots, leading in imports. Right now, these refiners have exhausted their official quotas needed for importing oil from abroad, which has reduced their demand.

Furthermore, recent US sanctions on key terminals in China, such as Rizhao — a crucial entry point for Iranian oil — have limited the discharge of shipments, forcing some tankers to change course to other ports.