Western tankers return to Russian oil trade as prices drop
Western tankers are returning to transporting Russian crude oil due to the drop in commodity prices below the limit set by the G-7. These changes result from disruptions in the activities of the shadow fleet and buyer preferences.
Falling global crude oil prices have led to western tankers resuming the transport of Russian oil. According to Bloomberg data, almost one-third of Russian Urals oil shipments left ports on western vessels. This is because prices have fallen below the limit set by the G-7.
These changes are also due to disruptions in the activities of the so-called shadow fleet that Russia has used after the sanctions imposed by the Biden administration, Bloomberg reports.
Western insurers have also returned to the trade, covering risks associated with oil transportation.
Since April, the price of Urals oil has been hovering around $50 per barrel, which has allowed western companies to resume trading without violating U.S. and EU regulations.
Western shipowners seized the opportunity, and the sanctions premium in freight rates reached as much as $12 per barrel.
