Shares in Norwegian oil tanker group Frontline FRO rise 3.8% as tighter U.S. sanctions on Russian and Iranian fleets boost demand for large crude carriers.

Sanctions on shadow fleets could potentially retire tankers from service and drive up demand for vessels operated by non-Russian traders such as Frontline, says Kepler Cheuvreux in a post on a Swedbank Aktiellt platform.

“Assuming that 50% of these volumes will now be replaced by exports from Middle Eastern countries and through large crude carriers (VLCCs), this means that demand for VLCCs could potentially increase by 6-7%,” adds broker.
Source: Reuters