Surpluses make oil market tighten in Asia

Just over a year after a reduction in production led by the Organization of Petroleum Exporting Countries (OPEC) and Russia, the oil markets in Asia were visibly tightened, with significant amounts of oil surpluses withdrawn from Tankers used for storage and delivered to customers throughout the region.

Ship data shows that about 15 super tankers are currently full of oil floating on the coasts of Singapore and neighboring Malaysia, the main shopping and storage center of Asia Middle East oil for Asia.

That's a little less than last November and half the number of tankers used for storage in the mid-2017.

Traders say that the ground tanks in the region, including that of Vopak, in Johor, Malaysia, are also no longer full, marking a turnaround in relation to 2016/17, when one feared a situation known as "tank-top", in which the oil markets They're so swollen, they run out of storage capacity.

The drop in storage is a sign that the production restriction initiated by OPEC and its allies, including Russia, in January 2017, is having the intended effect of reducing a global surplus of supply.

In addition, shipments data show that most oil tankers in the vicinity of Singapore are only partially full, in contrast to the visa in 2016/17, when they were completely full of oil. Source

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