Oil traders seek U.S. licenses to return sanctioned tankers to service

· Oil & Gas · United States

Some of the world's largest oil traders are asking Washington for permission to put sanctioned tankers back to work, as a global vessel shortage pushes oil transportation costs to extraordinary levels. Trafigura, Vitol, Mercuria and Abu Dhabi National Oil Co. are negotiating with U.S. officials for licenses to purchase or employ the vessels. The request underscores how a squeeze on available tanker capacity has become a costly bottleneck for the physical oil trade. Freight costs have climbed sharply, adding to the expense of moving crude and refined products. Washington's response will determine whether a chunk of the global tanker fleet can re-enter service and help ease the freight strain.

Why it matters：Tanker availability is now a binding constraint on the physical oil market; licensing decisions in Washington could shift global freight costs and the economics of moving crude for traders and refiners worldwide.

Key points

  • Trafigura, Vitol, Mercuria and ADNOC are in talks with U.S. officials
  • A global vessel shortage has pushed oil transportation costs to extraordinary levels
  • The companies are seeking licenses to purchase sanctioned tankers

Sources (original reporting)

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