Floating oil storage: a means to increase oil profits or evidence of the effectiveness of the Iranian embargo?

Floating oil storage is a system that makes use of tankers, normally used to transport crude oil, for temporary storage. Tankers converted for storage anchor in various ports for short periods of between 4 to 6 weeks, and sometimes for longer periods of 3 to 6 months. In most cases, Very Large Crude Carriers are used because they have the capacity to hold about 2 million barrels of oil. Since 2006, floating oil storage has increased worldwide due to European environmental laws, oil trader machinations to increase their profits and marked changes in oil production and oil consumption patterns. In recent years, Iran has become the main player on the floating oil storage market. Since 2010 however, Iran’s increased use of floating oil storage has proven the effectiveness of Western sanctions on Iran and emphasised its difficulties in selling its products.