The administration of the US President Donald Trump is considering easing sanctions on some of the shadow fleet tankers that previously transported oil from Russia, Iran and Venezuela. Washington wants to reduce record high prices for seaborne oil shipments.
Reuters reports this, citing an American official.
This is not about allowing these vessels to transport sanctioned Russian or Iranian oil. The US may allow individual sanctioned tankers to be used to transport oil and petroleum products that are not themselves subject to restrictions.
To do this, the companies will have to separately obtain permission from the US Treasury Department. According to Reuters, Washington wants to increase the supply of oil and fuel from the Persian Gulf countries in this way.
Meanwhile, according to research group Energy Aspects, the US Energy Secretary Chris Wright, in an address to the World Petroleum Congress this week, said the administration is discussing easing sanctions to reduce record-high prices for seaborne oil shipments.
However, experts doubt that this step will significantly reduce the cost of transportation. A significant part of the shadow fleet vessels are old and in poor technical condition, and European and British rules for insurance companies will continue to apply. Therefore, only individual tankers can return to the market.
Oil tanker rates have recently risen to record levels due to wars in Ukraine and Iran and supply problems across the Middle East. High transportation costs have also made US oil less attractive to some Asian buyers.
Reuters notes that discussions on easing sanctions against the shadow fleet vessels began a few days after the United States lifted part of the sanctions on Russian diesel fuel.
This decision was criticized by Ukrainian President Volodymyr Zelensky, European countries and some Republicans in the US Senate. They stated that Russia could use the additional revenues from fuel exports to finance the war against Ukraine.
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