A Billion-Barrel Oil Glut Is Forming at Sea

The oil market is grappling with whether sanctioned Russian and Iranian cargoes should still be counted as supply. This may explain why oil prices have been slow to react to a huge glut that is building on the ocean.

There are 1.4 billion barrels of oil “on the water.” That is 24% higher than the average for this time of year between 2016 and 2024, according to oil-analytics firm Vortexa. The data measures shipments that are on their way to be unloaded at a port, or cargoes that haven’t yet found a buyer.