Will loosening the noose on the grey fleet make a difference?

The US administration has recently mooted easing sanctions on grey fleet tankers in an attempt to bring down soaring tanker freight rates. This has already generated significant debate amongst tanker and oil market participants with some suggesting that it will make little difference to either freight levels or oil prices. This issue was discussed in a recent edition of BRS Weekly Tanker Newsletter which was quoted by Tradewinds:

BRS and Clarksons join doubts over US tanker waiver

“BRS said just 148 deep sea tankers are sanctioned by the US Treasury department alone, with most already trading” “The easing of [US] sanctions on grey tankers is unlikely to have a significant and immediate impact on tanker freight as the number of ships which it will impact is too small to move the needle,” BRS said.

“Since the majority of these grey ships appear already engaged in grey trade, it may not drive looser oil or tanker market fundamentals. It would instead see more mainstream oil carried at the expense of Russian or Iranian oil.”

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