Oil Traders Seek Release of US-sanctioned Tankers Amid Vessels’ Scarcity, Soaring Freight Costs.
Trafigura, Vitol, Mercuria and Abu Dhabi National Oil Company (ADNOC) are negotiating with US officials for licences to purchase or lease blacklisted oil tankers, Bloomberg reported.
The talks involve about 50 vessels currently under US sanctions.
Treasury officials are said to be considering approvals on a case-by-case basis, although no decisions have been finalised.
The proposal comes after months of shipping disruptions stemming from the Iran war, which has forced tankers onto longer routes, increased insurance costs and tied up vessels in inefficient transfers around the Strait of Hormuz. The cost of chartering a supertanker from the US Gulf Coast to China, according to the report, reached nearly $80 million in October, roughly 10 times the average rate before the conflict. Valero estimated last month that shipping US crude to Asia had reached $30 to $35 per barrel, compared with about $5 a year earlier. The soaring costs have already affected trade flows.
MSEApp News is publishing an original rewrite of this tip for readers, based on reporting associated with THISDAY.