US Weighs Allowing Sanctioned Tankers to Carry Non-Sanctioned Oil
The US administration is considering a proposal that would allow previously sanctioned tankers to carry crude and petroleum products not subject to US restrictions, according to Reuters. This move aims to increase oil flows from the Gulf and ease freight rates.
The proposal would apply to vessels that had been sanctioned after carrying oil and petroleum products linked to Russia, Iran, and Venezuela. These tankers could be permitted to transport non-sanctioned crude or products, but they would not be allowed to carry Russian or Iranian oil that remains subject to US restrictions. Companies seeking to employ sanctioned vessels would need to apply to the US Treasury Department for permission.
The Department of Energy emphasized that any easing of restrictions would not enable Russia to move Russian crude or petroleum products. US energy secretary Chris Wright discussed possible relief for shadow fleet vessels during a video appearance at the 25th WPC Energy Congress in Riyadh.
Easing Restrictions Would Not Significantly Impact Freight Rates
Energy Aspects noted that removing restrictions from shadow fleet tankers is unlikely to sharply reduce freight rates or immediately add significant capacity to the mainstream fleet. Many of these vessels have remained active over the previous three months, and marine insurers would still be subject to EU and UK rules, limiting the potential impact of any US action on the wider tanker market.
The discussions follow General License 135, issued by the Treasury’s Office of Foreign Assets Control on October 9. This license authorizes transactions involving the sale, delivery, offloading, and importation of Russian-origin diesel until April 7, 2027, but does not provide broader approval for sanctioned shadow fleet tankers.
No Immediate Impact Expected
The proposal is part of a larger effort to increase oil flows from the Gulf and ease freight rates. However, it is unlikely to have an immediate impact on the global tanker market. The majority of sanctioned vessels are already active in the market, and marine insurers would still be subject to EU and UK rules.
In conclusion, the US administration’s proposal to allow previously sanctioned tankers to carry non-sanctioned oil aims to increase oil flows from the Gulf and ease freight rates. While this move may not have an immediate impact on the global tanker market, it is part of a larger effort to address the challenges faced by the industry.
Original Article: US weighs allowing sanctioned tankers to carry non-sanctioned oil — Portnews