Key facts
- Brent crude fell to $104.39 per barrel, down from a weekly high above $106.
- WTI crude fell to $94.02 per barrel, down from near $96.
- Record tanker rates are attributed to Middle East conflict and ship-to-ship transfers.
- The U.S. is considering easing sanctions on certain shadow fleet tankers.
- Energy Aspects believes easing sanctions would have minimal impact on tanker availability.
Oil prices retreated from recent highs on Tuesday as President Trump considered easing sanctions on tankers involved in transporting oil from Venezuela, Russia, and Iran. This potential policy shift aims to alleviate a growing tanker crunch and bring down record-high tanker rates. Brent crude was trading at $104.39 per barrel, down from over $106 earlier in the week, while West Texas Intermediate was at $94.02, down from near $96. The availability of tankers has been impacted by the conflict in the Persian Gulf and increased ship-to-ship transfers outside the Strait of Hormuz, leading to record freight rates and concerns about potential attacks. An unnamed U.S. official told Reuters that the federal government is contemplating easing sanctions on some 'shadow fleet' vessels, requiring shippers to apply to the Treasury Department for permission to use them. Energy Aspects suggested that such a move would have a limited effect on tanker availability, as many sanctioned tankers have been actively trading. The report follows a previous deal between Trump and Russia for fuel exports, which faced criticism.