A shadow fleet of sanctioned oil tankers from Russia, Iran, and Venezuela is swelling, potentially impacting global oil prices. Chinese and Indian buyers are turning to other sources due to sanctions on Russian oil. Iran faces difficulties exporting to China, leading to a rise in floating oil storage.

Asian floating oil storage has surged to 53 million barrels, with significant volumes coming from sanctioned producers. The increase in oil at sea in Asia is due to high volumes and import quota limitations in China. Ship-trackers suggest even higher amounts of oil in floating storage.

Vortexa reports 161 million barrels of Iranian crude at sea, a significant increase from September. Venezuelan crude on water is at 72.3 million barrels, up by 6.6 million barrels. The presence of sanctioned oil at sea could impact global supply and prices, depending on whether buyers emerge.

The International Energy Agency reports a 6.2 million barrel daily increase in global oil supply since January, contributing to an oversupply situation. Oil on water rose by 80 million barrels in September, adding to global inventories. Analysts warn that oversupply will continue to pressure prices.

Read more at Yahoo Finance: Floating Oil Storage Surge Puts Market Balance on Edge