Market participants: New US sanctions on Iran will further blur the origin of crude oil

The latest sanctions imposed by the Trump administration on Iranian oil may spur operators to respond by stepping up ship-to-ship transfers or shutting down geolocation signals for a longer period of time. According to market participants, the ban has increased barriers to trying to deliver barrels of Iranian oil to customers. The United States on Monday imposed sanctions on 13 ships, as well as other entities and individuals, in an effort to renew what it calls a strategy of maximum pressure on Iran. Market sources said that ship-to-ship transfers are likely to increase, and the source of crude oil may be further obscured. Among the vessels targeted on Monday were two ultra-large crude carriers that had just transshipped a cargo off the coast off Malaysia, according to Kpler and S&P data. The 23-year-old tanker Amak transferred 2 million barrels of Iranian crude to the Ayden, which was built in 2008. Foreign media tracking data shows that a super-large oil tanker “Lydia II” built in 2009 gave a signal to sail in the waters near Malaysia on January 22, then disappeared and did not reappear until February 20.