US shadow fleet proposal sparks tanker stock rout
Asian shipping stocks fell on Thursday after reports that Washington is considering easing sanctions on shadow fleet tankers. COSCO Shipping Energy dropped more than 13% in Hong Kong, while China Merchants Energy Shipping, COSCO Shipping Energy's Shanghai-listed shares and China Merchants Nanjing Tanker hit their 10% daily downward limits in mainland trading. The reports say the Trump administration is discussing exemptions allowing blacklisted tankers linked to Russia, Iran and Venezuela to carry oil and petroleum products not themselves subject to American sanctions, with Treasury approval required to employ the vessels; no formal easing has yet been announced.
Why it matters: The proposal sits at the intersection of the briefing's sanctions and energy trade theme, since relief for shadow-fleet tankers would bear on both freight markets and the constraints on Russian, Iranian and Venezuelan oil revenues.