US waives Russia tariffs and moves to legalise dark fleet tankers as Brent holds near US$109

The United States has waived most of the new sanctions and tariffs on Russia that were due to start on 18 October, and is now moving to let sanctioned "dark fleet" tankers carry oil legally. Oil prices eased on Monday 19 October and were steady above US$109 a barrel on Tuesday, according to Trading Economics.

ABC News reported that President Donald Trump signed an executive order on Friday 16 October waiving sanctions and tariffs required under a law named after the late Senator Lindsey Graham. They were set to take effect on 18 October. According to ABC News, the waived measures include:

• Tariffs of up to 500% on all Russian goods, such as oil and gas.
• Tariffs of up to 100% on the top five buyers of Russian crude oil and natural gas that keep buying it.
• Tariffs on the top five countries helping Russia evade oil sanctions.
• Sanctions on foreign banks doing significant business with Russian state-owned banks.

ABC News also reported that the Treasury's Office of Foreign Assets Control issued a general licence through April allowing the sale, delivery and import of Russian diesel into the US, with Russia to supply hundreds of thousands of tons of diesel to the US and global markets. Ukrainian President Volodymyr Zelenskiy criticised the waiver, and several US senators urged that it be reversed.

On Monday, Energy Secretary Chris Wright said the administration is authorising the sale of sanctioned oil tankers so they can legally carry crude, Bloomberg reported via gCaptain. He described it as "converting dark tankers to legitimate tankers" and said the ships will "not carry sanctioned oil anymore". Wright estimated there are about 1,600 vessels in the global dark fleet and said converting them could add "dozens" or even "hundreds" of tankers to the legitimate fleet.

Oil and tanker supply drive fuel costs and freight surcharges for Sri Lankan importers and exporters. HDFC Sky, citing Oilprice.com, reported that Brent crude futures fell 1.9% to US$107.8 a barrel on 19 October after the waiver, having briefly touched US$110 on Friday, the highest since 19 May. Trading Economics, which tracks a contract for difference on Brent, put the price at US$109.51 on 20 October, almost flat on the day and up 9.14% over the past month.

The supply picture is still tight. HDFC Sky reported Kpler data showing crude flows through the Gulf averaged about 8.5 million barrels a day in the seven days to Friday, down from more than 20 million the week before. Trading Economics reported Wright's view that Persian Gulf oil shipments had recovered to about 80% of pre-war levels, with refined product deliveries still limited. These two readings measure different things and periods, and they point in different directions.

Bloomberg reported that moving oil from the Persian Gulf to East Asia costs more than six times its pre-conflict level, and that more than 40% of the world's roughly 850 very large crude carriers are in or near the Gulf, citing Signal Ocean. More legal tankers could ease that over time, but Secretary of State Marco Rubio said the administration could take up to 60 days to assess the economic effects, according to HDFC Sky.

Ship fuel has not eased yet. Ship & Bunker data showed Singapore VLSFO at US$934.00 a tonne on 19 October, up US$20.50 on the day.

• Check how your current freight quotes and contracts calculate bunker and emergency fuel surcharges, and when they reset.
• If you buy diesel or other fuel-linked inputs, watch the next CPC price revision rather than reacting to daily Brent moves.
• Ask your forwarder or carrier whether any recent surcharge is tied to a published fuel index you can check.
• Keep in mind that the waivers can be reversed and that Gulf shipping risk remains, so price forecasts are uncertain.

Related: IEA says diesel tight into 2027.