Floating oil mitigates energy price swings
Despite the geopolitical tensions in the Middle East, oil prices still avoid sharp increases thanks to the largest floating storage in history, estimated at 1.35 billion barrels. This provides refineries with readily available stock and reduces the need to purchase shipments at higher prices. Most of this stock is heading to Asian markets, particularly China and India, while Iran and Russia's exports are increasing, further boosting supply abundance. However, this protection is temporary, as exports decline and inventories begin to decrease, potentially pushing oil prices higher again amid ongoing geopolitical pressures.
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