As the US-Iran conflict continues, with a blockade on the Strait of Hormuz, indications suggest Iran’s Kharg Island is running out of oil storage space. To mitigate this, Iran has brought a 30 year old very large crude carrier (VLCC) out of retirement.
In an analysis published by Investing.com, JP Morgan’s head of commodities, Natasha Kaneva, estimated Iran’s onshore storage capacity at around 86 million barrels, which would fill within 22 days if exports remained suspended because of the blockade. The introduction of four VLCCs extend this period to 26 days.
