Shipping Broker Arrow: Persian Gulf Floating Storage Capacity Critically Low, Risk of Oil Producers Shutting Down Wells Rises

Shipping broker Arrow Shipbroking Group stated that as floating storage capacity in the Persian Gulf waters becomes "extremely tight," the risk of local oil-producing nations shutting down wells entirely is rising. In a report on March 31, the company said that well shutdowns could have long-term impacts on production, as restoring full-capacity output might take weeks and, in some cases, lead to permanent loss of production capacity. Currently, out of 332 tankers in the Persian Gulf, only 120 are in an empty state. Among these, Very Large Crude Carriers (VLCCs) have only 6 empty vessels, while 70 are carrying cargo. (Bloomberg)