Global floating oil volumes hit record high

Total crude and condensate volumes moving on tankers reached about 1.24 billion barrels last week

The volume of crude oil and condensates held on tankers worldwide rose to an unprecedented level, signaling a growing surplus in the global market as production remains high and demand slows.

According to a Bloomberg report citing data from analytics firm Vortexa, total crude and condensate volumes moving on tankers reached about 1.24 billion barrels in the week ended Oct. 17, up from 1.22 billion barrels a week earlier.

These figures include oil in transit but exclude floating storage, referring to vessels that remain stationary for more than seven days.

The rise in floating oil volumes is seen as an indication of worsening global oversupply, as output continues to outpace actual demand. Analysts expect the surplus to reach around 4 million barrels per day in the early months of next year.

Analysts quoted by the agency noted that longer voyage times between production hubs in the Middle East and Russia and consumption centers in Asia are contributing to the increase in floating oil volumes, with shipments from the Middle East to Asia taking about one month and Russian crude shipments taking up to two months.