Morgan Stanley: Iran deal could send tanker rates soaring

A repeal of the oil sanctions against Iran could send spot rates for the major crude oil tankers, VLCC, soaring to more than USD 100,000 per day, or twice as high as the current levels, says Morgan Stanley.

Photo: Euronav

A political deal concerning Iran's nuclear program, which would also ease the Iranian oil sanctions, could potentially trigger a doubling of the tanker rates - rates that are already experiencing the best quarterly levels in five years for the major crude oil tankers, VLCC, says US-based financial house Morgan Stanley.

VLCC spot rates have hovered at strong levels for a long period of time, at upwards of USD 47,000 per day, in spite of a small decline last week, notes Morgan Stanley, which has calculated the consequences of a repeal of the oil embargo against Iran. The oil ministry in Tehran announced recently that the country could increase its oil export by a million barrels per day in just a few months if the sanctions are lifted.

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