Iran’s Crude Storage Buffer Slashes To 22 Days Or Less Amid Export Crunch
Iran’s unused oil storage to 22 days or less.
Iran is rapidly running out of space to store its crude oil, with unused capacity estimated at just 12 to 22 days or less, according to energy analytics firm Kpler, raising the risk of deeper production cuts amid ongoing geopolitical tensions.
The shrinking storage window comes as Iranian oil exports have dropped sharply following a U.S.-led naval blockade imposed earlier this month. The restrictions have severely limited shipments through the strategically vital Strait of Hormuz, leaving large volumes of unsold crude accumulating in domestic and offshore storage facilities.
Kpler analysts warned that if storage capacity is exhausted, Iran may be forced to cut oil production by an additional 1.5 million barrels per day by mid-May. The country has already reduced output significantly, with estimates suggesting cuts of up to 2.5 million barrels per day in recent weeks as logistical constraints tighten.
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The decline in exports has been steep. Iranian crude shipments have fallen to roughly 567,000 barrels per day, down from an average of about 1.85 million barrels per day in March—a drop of nearly 70%. Analysts say the blockade has effectively choked off traditional export routes, with no confirmed tankers successfully bypassing restrictions in recent weeks.
Despite the operational strain, the financial impact on Iran may take longer to materialise. Oil cargoes typically take weeks to reach key buyers such as China, followed by additional time for payment settlements. As a result, the full revenue hit from reduced exports is expected to be felt only after several months.
The situation underscores mounting pressure on Iran’s oil sector, which remains a critical pillar of its economy. With storage nearing capacity and export avenues constrained, the country faces a narrowing set of options, including further production cuts or costly alternative storage solutions, as global markets closely monitor developments in the region.
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