Iran to store oil in fleet of supertankers

September 13, 2018

Iran is starting to store oil on its fleet of supertankers again as impending U.S. sanctions force the Persian Gulf country to revive a strategy it deployed under previous curbs.

“We can expect floating storage to increase under the growing impact of U.S. sanctions in the coming months,” Harry Tchilinguirian, head of commodity-markets strategy at BNP Paribas SA, said from London.

So far, most of the ships in question - all of which are Iranian owned - have only been holding crude at sea for a few weeks, rather than for months at a time as they did during 2012-2016 sanctions, tanker tracking compiled by Bloomberg show.

Trump is trying to cut off Iran’s oil exports to deprive the third-biggest member of the Organization of Petroleum Exporting Countries of income. In May, he pulled out of a 2015 pact that eased sanctions in return for Iran slowing its nuclear program, describing the deal as “rotten to its core”.

(Source: Bloomberg)

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