US allowing 'dark fleet' oil tankers to ship crude, Energy Secretary says

The United States government, under the administration of President Donald Trump, has announced that it will permit oil tankers under sanctions to begin a process of legitimately shipping crude oil, according to Energy Secretary Chris Wright. The Secretary made this statement at an event hosted by Citadel Securities in New York.

The move involves investors buying and refurbishing idled sanctioned tankers, which would then be used to transport legal oil. Wright stated, "We're going to move some of the ships from what I call the ‘bad-guy fleet’ to the ‘good-guy fleet.’ They will not carry sanctioned oil any more."

The United States currently has approximately 1,600 tankers in what is referred to as the 'dark fleet.' It is anticipated that dozens or even hundreds of these vessels could be incorporated into the legitimate shipping fleet. This development is seen as an attempt by the Trump administration to help reduce energy prices, which have increased significantly due to the prolonged closure of the Strait of Hormuz.

The global benchmark for oil, Brent crude, settled 0.48% lower at $109.3 per barrel, while West Texas Intermediate, which tracks US crude, dropped 0.61% to $98.42.

Kpler, an analytics firm, commented on the potential impact of easing sanctions on the 'dark fleet.' The firm estimated that only 24 of the approximately 160 vessels subject to sanctions from the US Treasury Department could return to mainstream trade, taking into account factors such as age and ownership restrictions. In their analysis, they suggested that sanctions relief might not yield significant commercial benefits and could weaken geopolitical leverage.

Wright countered this perspective, asserting that the process would involve converting dark tankers into legitimate ones.