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