Rising tanker prices on the eve of the stop to Russian oil
Rising tanker tariffs are weighing on crude oil trade, just two weeks ahead of the revolution in international oil trading, i.e. the EU embargo on imports of Russian crude and the associated price cap on Russian oil .
Gains on the benchmark crude's trading route hit $100,000 a day on Monday, according to Bloomberg estimates. This is the highest tariff for tankers since the beginning of 2020, just before Covid reduced global oil demand. Here are some related indexes from hellenicshippindnews
The much higher cost of transporting crude this year is a result of the longer voyages many tankers are making due to EU sanctions on Russian exports. Cargoes of Russian oil from Baltic ports in Russia now travel months back to Asia – now Moscow's main export market – instead of just a week from a Russian Baltic port to Rotterdam in the Netherlands.
Falling spot price premiums on various crudes, however, could offset some of the high shipping costs, traders told Bloomberg.
The surge in freight rates adds another layer of uncertainty for crude oil buyers, on top of the EU embargo and price cap that will take effect on December 5th. After that date, Russian oil will have to be sold at or below a certain threshold – yet to be announced – otherwise the cargo will not be eligible for Western shipping services, including financing and insurance.
According to some analysts, there are not enough non-Western tankers available to carry the current volumes of Russian oil to the markets. However, other analysts note an increase in vessel purchases by unknown entities in recent weeks, in preparation for what they believe is Russia's imitation of Iran and Venezuela's oil export tactics, which for years export their crude oil under wraps after the US sanctioned their oil exports in 2018 and 2019, respectively.
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The article Rising tanker prices on the eve of the stop to Russian oil comes from Scenari Economics .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/prezzo-delle-petroliere-in-crescita-alla-vigilia-dello-stop-al-petrolio-russo/ on Sat, 26 Nov 2022 14:00:54 +0000.