• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 1 min EU has already lost the Trump vs. EU Trade War
  • 1 day Crazy Stories From Round The World
  • 1 day Science: Only correct if it fits the popular narrative
  • 1 day Iran Burning: Shock Gas Price Hike Triggers Violent Protests After Subsidy Cuts
  • 1 day Everything You Need To Know About Trump
  • 8 hours Pope Proposes New Sin: Thou Shalt Not Destroy The Harmony Of The Environment
  • 15 hours IEA predicts oil demand will grow annually at 1 million barrels a day for the next 5 years
  • 2 days Atty General Barr likely subpeona so called whistleblower and "leaker" Eric Ciaramella
  • 1 min Water, Trump, and Israel’s National Security
  • 17 hours ‘If it saves a life’: Power cut to 1.5 million Californians
  • 1 day Impeachment Nonsense
  • 2 days What are the odds of 4 U.S. politicians all having children working for Ukraine Gas Companies?
  • 2 days Do The World's Energy Policies Make Sense?
Alt Text

Aramco Reveals Its Valuation

Aramco will sell the first…

Alt Text

The Worst Is Over For Oil Markets

It has been a tough…

Alt Text

Oil Majors Go On $27 Billion Selling Spree

Global giants of the oil…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Iran’s Secret Oil Tanker Mission

Iran is on a discreet mission to procure second-hand oil tankers in order to keep exporting crude oil. This comes after U.S. sanctions on its oil and shipping industries scared Western banks, insurers, and commercial shipping operators, Reuters reported, citing sources from Iran and from Western countries.

Days after U.S. sanctions on Iran’s oil, shipping, and insurance industries returned in early November, the Special Representative for Iran Brian Hook said at a press briefing that “If Iranian tankers make calls to your ports or transit through your waterways, this comes at great risk.”

“From the Suez Canal to the Strait of Malacca and all chokepoints in between, Iranian tankers are now a floating liability,” Hook said.

Iran has more than 50 tankers, but this month, for example, it’s using 12 of those to store oil in floating storage at sea, according to MarineTraffic data cited by Reuters.

Iran has resorted to floating storage again after the U.S. sanctions have removed more than 1 million bpd of Iranian oil exports from the market since November.

The U.S. sanctions have also resulted in stalled early negotiations between Iran and South Korea for new supertankers, while Panama has de-flagged many Iranian ships from its registry, according to Reuters’ sources.

Shipping sources tell Reuters that this time around it will be more difficult for Iran to procure ships than it was with the previous round of sanctions due to increased scrutiny and because businesses don’t want to be involved in anything linked to Iran for fear of running afoul of the U.S. sanctions.

A senior Iranian official told Reuters that “Plenty of countries are happy to do business with Iran,” adding that there are several ways to cope with the shortage of tankers, including using tankers of other countries.

Related: Is A Crisis Looming For Canadian Oil?

While tracking Iran’s oil exports has become an increasingly difficult task after the U.S. sanctions returned, some of the key Iranian oil customers that received U.S. waivers resumed buying Iran’s oil in 2019 or increased imports to their respective ceiling allowed under the waivers, after an initial ‘wait-and-see mode’ for November and December purchases amid uncertainties as to who was getting waivers.

The U.S. has signaled that Iranian customers shouldn’t rely on waiver extensions, but the Trump Administration has not yet officially said if it would stop granting waivers. It is likely that that decision will depend on the price of oil when the U.S. needs to decide about exemptions, because, despite the pledge for ‘zero’ Iranian exports, the Administration will not be willing to drive oil prices up too high.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com




Download The Free Oilprice App Today

Back to homepage



Leave a comment
  • Mamdouh Salameh on March 13 2019 said:
    Iran has every right under international law to take whatever measures to protect its oil exports against US sanction since these sanctions are national ones and not UN sanctions. Buying new oil tankers or contracting ones from other willing countries is no exception.

    Moreover, countries which were granted sanction with the exception of South Korea and Japan waivers will continue to buy Iranian crude oil with or without waivers.

    Still, the Trump administration has no alternative but to renew the sanction waivers when they expire in May or issue new ones for no other reason than to use them as a fig leaf to mask the fact that US sanctions have yet to cost Iran the loss of even a single barrel and the fact that the zero exports option is a bridge too far.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London
  • Bill Simpson on March 16 2019 said:
    Oil is too valuable to ever stop trade in it from an area where it is as cheap to produce as Iran. Even if they had to transfer it a couple of times, they could still make some money.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play