(Bloomberg) -- The boss of one of the world’s largest tanker companies said recent moves to tighten sanctions on Iranian and Russian oil flows should boost earnings for crude-carrying vessels.
A push by ports in China’s Shandong province to reject sanctioned ships may have a significant impact on flows, Frontline Management AS Chief Executive Officer Lars Barstad said Tuesday. Other recent curbs, including America’s decision to blacklist China’s biggest shipping line, will also affect trade, he said.
“The most bullish part is how the narrative is gradually changing,” Barstad said. “If the Chinese are serious, and the Office of Foreign Assets Control manages to keep their list updated, this will all have to be replaced by compliant ships and oil.”
Frontline shares reversed earlier losses, rising as much as 6.3% in Oslo after news broke of the push in Shandong. Benchmark tanker rates are about $21,000 a day, near their lowest since October 2023.
Barstad’s firm operates more than 40 very large crude carriers, capable of hauling about 2 million barrels of oil each, according to Clarkson Research Services Ltd. That puts it alongside the biggest Chinese shipping companies and Saudi giant Bahri as one of the market’s main players.
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