The amount of oil stored at sea has reached 1.2 billion barrels, marking its highest level in nine years.
A new high has been reached with 1.2 billion barrels of crude oil currently being transported across the world’s oceans, marking the largest volume in nine years. This trend highlights how oil production is still exceeding consumption, as reported by Vortexa data.
According to Bloomberg, there’s currently more oil in transit than at any time since 2016, largely due to increased production from major oil-producing countries. However, this spike doesn’t automatically imply that oil is being stored at sea because there’s no room on land. Instead, a significant portion of this oil is still searching for buyers, highlighting how global supply has exceeded demand.
When accounting for floating storage, the overall volume of oil at sea is even greater, reaching heights comparable to those observed in 2020 when demand plummeted due to the pandemic.
Traders perceive the surplus as a cautionary sign, yet China considers it a chance to capitalize. As reported by Bloomberg, data from Vortexa indicates that since January 2025, China, the world’s biggest importer of crude oil, has been amassing reserves at a rate of nearly one million barrels each day.
In addition, Beijing is increasing its oil storage capabilities. State-owned companies are constructing 11 new tank farms, which are planned to be finished between 2025 and 2026. According to a report by Reuters, these facilities are expected to increase capacity by approximately 169 million barrels, which is nearly equivalent to the 180–190 million barrels that were constructed between 2020 and 2024.
Despite sluggish domestic demand, China’s oil imports continue to increase. This indicates that the country is purchasing inexpensive crude oil to ensure its long-term supply needs are met. According to Alex Longley from Bloomberg, China has been absorbing a significant portion of the global oil surplus this year, stockpiling barrels since the early part of 2025.
Source: Bloomberg Report