Oil Shipping Insurance Issues will take Months to Resolve

The CEO of one of the world’s largest independent tanker firms says securing insurance for oil cargoes from Iran is likely to take another two to three months, potentially limiting Iran’s ability to quickly ramp up oil exports.

Robert Hvide Macleod, chief executive of Norway’s Frontline, told investors:

“We have not lifted anything yet, there are still terms of insurance and payments. There are still some outstanding [issues]. [But] we expect that to be in place within two to three months.”

Reuters quotes MacLeod as saying that once the insurance issue is resolved, Iran would rely more on international shipping, adding that Iranian tankers have been holding unsold oil at Iranian ports due to a lack of land storage facilities.

(Source: Reuters)

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