Iranian Shadow Fleet Moves Sanctioned Oil Through Malaysian Waters
What happened
The Iranian shadow fleet is using ship-to-ship transfers in waters off the southwestern coast of Malaysia to illegally transport crude oil. This illicit cargo has flooded the global oil market at heavy discounts.
Why it matters
The influx of discounted oil is suppressing prices for oil clients. Additionally, the vessels used by the shadow fleet are often old and dubiously insured, which threatens to raise insurance premiums across the industry.
Iranian crude oil is being smuggled to Chinese refineries via offshore zones off the coast of Malaysia.
Who's involved
- MalaysiaThe country where the shadow fleet is operating in Malaysian waters
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- MalaysiaSpeculative
Oil industry participants could face higher insurance costs due to the use of old and dubiously insured vessels
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The entities involved
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Malaysia
country in Southeast Asia