Western tankers resume Russian oil shipments amid price drop
Western tankers are returning to the transportation of Russian crude oil, due to commodity prices dropping below the limit set by the G-7. These changes are a result of 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 departed from ports on Western vessels. This is because prices fell below the limit set by the G-7.
These changes are also attributed to disruptions in the activities of the so-called shadow fleet that Russia utilised after the sanctions imposed by the Biden administration, Bloomberg reports.
Western insurers have also re-entered the market, 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 breaching American and EU regulations.
Western shipowners have seized the opportunity, and the sanctions premium in freight rates has reached as much as $12 per barrel.
