The boost to VLCCs from Iranian sanctions: Jefferies breaks down the numbers

Last week’s sanctions by the US treasury department against Iran’s petroleum industry could see mainstream VLCC cargoes increase by roughly 5% of the current fleet.

That is the view of Jefferies lead shipping analyst Omar Nokta, who dissected effects of the measures in a note to clients on Monday.

‘Dark’ cargoes depleted

Nokta’s forecast is based on the assumption that any drop in Iranian exports to weaker levels seen between 2019 and 2022 are made up in full by other producers.