Some of the world’s largest oil trading companies are seeking authorisation from the United States to acquire or lease vessels under sanctions, as escalating freight rates and a shortage of available tankers disrupt global crude oil movements.
Trafigura, Vitol, Mercuria and Abu Dhabi National Oil Company (ADNOC) are in discussions with U.S. officials over licences that would allow them to purchase or charter blacklisted oil tankers, Bloomberg reported on Friday, citing people familiar with the negotiations.
The discussions cover approximately 50 vessels currently subject to U.S. sanctions. Officials at the Treasury Department are considering applications individually, but no approvals have been confirmed.
The push to return the vessels to commercial service follows months of disruption linked to the Iran war, which has complicated shipping routes, increased insurance expenses, and left tankers caught up in inefficient transfers around the Strait of Hormuz.
Freight charges have consequently climbed to exceptional levels. In October, the cost of hiring a supertanker to transport crude from the U.S. Gulf Coast to China approached $80 million, about ten times its average level before the conflict.
Valero also estimated last month that transporting U.S. crude to Asian markets had become significantly more expensive, with shipping costs reaching between $30 and $35 per barrel, compared with roughly $5 per barrel a year earlier.
The higher costs are already affecting trade flows. Orders from Asian buyers for U.S. crude scheduled for November delivery dropped by approximately 50 percent in October, raising the possibility that shipments to the region could fall to their lowest level in seven years.
Allowing more tankers into the legitimate shipping market could help ease the capacity squeeze and reduce pressure on freight rates. However, the extent of any relief would depend on the condition and operational status of the vessels approved for use.
U.S. Energy Secretary Chris Wright said last month that the administration was examining arrangements under which investors could acquire and refurbish sanctioned tankers before deploying them to transport legitimate oil cargoes.
Treasury data compiled by Bloomberg showed that 1,568 vessels were covered by U.S. sanctions as of November 4, including 462 crude oil tankers.
However, bringing the blacklisted fleet back into mainstream shipping would involve more than securing Washington's approval. Many of the vessels are ageing ships that may require repairs, inspections and insurance arrangements before they can operate in conventional commercial markets.
There is also a regulatory complication, as a U.S. licence would not automatically lift restrictions imposed by other jurisdictions, including the European Union and the United Kingdom.
The distinction between restoring inactive tankers and authorising vessels already involved in sanctioned oil movements is also significant. Recommissioning ships that have been idle could introduce additional capacity into the market, while merely permitting vessels already transporting sanctioned crude to operate legally may offer limited relief to the global tanker shortage.
