US weighs allowing sanctioned tankers to carry legal oil

The Trump administration is discussing whether to let some previously sanctioned tankers carry oil and petroleum products that are not prohibited by U.S. sanctions, a U.S. official said. The proposal has not been announced as policy, and companies would need authorization from the Treasury Department to use the vessels, the official said. The discussions concern so-called shadow fleet tankers, which have carried oil from countries including Russia, Iran and Venezuela. The official said the proposed cargoes would exclude Russian and Iranian oil that remains sanctioned by Washington. The aim is to move more crude and refined products out of the Gulf. The talks come as global tanker freight rates have reached record highs, according to the reports, amid conflicts affecting energy markets and higher costs for Asian refiners seeking alternatives to U.S. crude. The administration is also facing pressure over fuel prices ahead of the November 3 midterm elections. Energy Secretary Chris Wright referred to the discussions in a video message to the World Petroleum Congress in Riyadh, according to research firm Energy Aspects. The full video and a transcript were not available. The...