A record 1.2 billion barrels of crude oil are currently in transit across global oceans, the highest volume since 2016, according to Vortexa data reported by Bloomberg.
This surge reflects persistent oversupply, with oil production outpacing global consumption.
The increase doesn’t solely indicate a lack of onshore storage but rather that much of the oil remains unsold, underscoring a global supply-demand imbalance.
Including floating storage, the total volume at sea rivals levels seen during the 2020 pandemic demand slump.While traders view the surplus as a warning signal, China sees an opportunity.
As the world’s top crude importer, China has been stockpiling oil at a rate of nearly one million barrels daily since January 2025, per Vortexa.
Despite weak domestic demand, Beijing is seizing cheap crude to secure long-term supplies.
To support this strategy, China is expanding its storage infrastructure. State-owned firms are building 11 new tank farms, set for completion between 2025 and 2026, adding about 169 million barrels of capacity, nearly matching the 180–190 million barrels built from 2020 to 2024, according to Reuters.
Bloomberg’s Alex Longley notes that China has absorbed much of the global oil surplus in 2025, steadily stockpiling since early this year, reinforcing its role as a key player in balancing the oversupplied market.
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