Western tankers resume the transport of Russian crude oil
Western tankers are resuming the transport of Russian crude oil because of a 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 shifting buyer preferences.
Falling global crude oil prices have led to western tankers taking on Russian oil transport once again. According to Bloomberg data, nearly one-third of Russian Urals oil shipments now leave ports on western vessels. This shift is due to prices falling below the G-7-imposed limit.
These changes are also attributed to disruptions in the so-called shadow fleet that Russia relied on after sanctions were imposed by the Biden administration, Bloomberg reports.
Western insurers have returned to the trade as well, covering risks associated with oil transportation.
Since April, the price of Urals oil has been hovering around $50 per barrel, enabling western companies to resume trading without violating U.S. and EU regulations.
Western shipowners seized the opportunity, and the sanctions premium in freight rates has reached as much as $12 per barrel.
