G7-Linked Ships Transport More Russian Crude in February

G7-linked tankers, particularly Greek operators, shipped 1.1mbpd, or 33% of the total Russian seaborne crude exports in February, up from 1mbpd in January amid strong freight rates according to S&P Commodity Insights and Maritime Intelligence Risk.

• This was despite tougher enforcement and due diligence procedures against price cap breaches.
• Greek-operated ships transported 16.6mn barrels last month, up from 11.5mn barrels in January, according to the S&P Global data.
• Major operators in Greece could have found ways to "technically" comply with the G7 price cap, Nikesh Shukla, S&P freight analyst, said.
• Russian Urals crude averaged $65/bbl in February on a FOB Primorsk basis, Platts data showed.
• "Russia will keep the prices below the price cap to avail the services of G7 tanker companies," Shukla said. "Shipments of cargo sold over price cap can be done by vessels owned by Sovcomflot or shadow operators."
• Freight rates for Russia-related trades have been strong partly due to risk premiums, with the lump-sum rate for a Suezmax carry Urals from Novorossiysk to the western coast of India heard around $8-$9 million in early March according to S&P.
• Reflecting higher freight costs, Platts had assessed the Urals DAP West Coast India at a $3.50/bbl discount to Forward Dated Brent for most of February, the narrowest since the assessment began in January 2023. The discount stood at $3.55/bbl 5 March.