Iran's Offshore Oil Storage Reaches Record High, Says Kpler

• Iranian crude and condensate in transit or floating storage hit 166 million barrels in the week ended January 11, a record since Kpler began tracking in 2016
• China, Iran's major buyer, slowed imports in late 2025 due to refiners lacking crude import quotas and elevated domestic inventories
• About half of Iran's offshore oil is positioned near Singapore to reduce geopolitical risk in the Gulf region, as President Trump has warned of possible strikes amid Iran's biggest anti-government protests in years

Summary: Iran's Offshore Oil Storage Reaches Record High

Key Facts:

Iran's offshore oil storage has reached a record 166 million barrels as of the week ending January 11, 2026, according to shipping data intelligence firm Kpler. This volume represents approximately 50 days of the country's production output—the highest level since Kpler began tracking data in 2016.

Primary Drivers:

The surge in floating storage stems from two main factors: reduced Chinese demand and geopolitical risk mitigation. Chinese refiners have slowed crude imports in late 2025 due to lack of import quotas and elevated domestic inventories. Additionally, Iran is strategically moving oil away from the Gulf region to protect supplies from potential U.S. military strikes, with approximately half of the stored oil now positioned near Singapore.

Geopolitical Context:

The buildup occurs amid Iran's most significant anti-government unrest in years, with U.S. President Donald Trump warning of possible military action. As a major OPEC producer, Iran has increased offshore storage to avoid production halts while demand from its primary customer remains weak.

Market Implications:

The record storage levels indicate potential oversupply concerns and reflect Iran's strategy to maintain production despite weakened demand. The shift of oil volumes away from the Gulf to locations like Singapore demonstrates Tehran's efforts to diversify storage locations amid heightened geopolitical tensions. This situation could impact global oil pricing and supply dynamics, particularly if Iranian exports remain constrained or if U.S. sanctions enforcement intensifies.

The development underscores the intersection of geopolitical risk, supply chain logistics, and changing demand patterns in Asian markets.