LONDON—Iran has started drawing on oil reserves in floating storage, according to ship-tracking data, a move which could mark a turning point for the country this year.

The data from Marine Traffic show a 1.4 million-barrel overnight decline on the Iranian floating storage tanker Hilda.

Iran boosted its oil production after international sanctions against the nation were removed early this year as part of a nuclear deal with six world powers. However, global crude prices plummeted, in part on expectations of Iran’s increased output, and the nation has struggled to unload its production as quickly as it had hoped in the pre-sanctions era.

Market participants had estimated Iran’s floating storage in February at 35 million to 50 million barrels.

In July, Iran’s gasoline consumption hit record highs, suggesting refineries could be ramping up their use of crude to meet demand.

By The Wall Street Journal