G7 Services for Russian Oil Continue Despite Price Cap Breach

Russian crude oil pricing above the G7's $60/bbl cap has yet to significantly hinder the provision of western services, according to Bloomberg.

• Since July 12, around 40% of vessels loading Russian crude from Russia’s Baltic and Black Sea Ports were Western owned vessels which must adhere to the cap. This compares to around 50% when prices were below $60/bbl.
• The share of vessels with western insurance visiting Russian ports has also fallen from 59% to 45% since prices exceeded $60/bbl.
• Russian crude oil should be pricing at $60/bbl or less to be eligible for western services, but the enforcement lacks stringency as firms solely require a written attestation that the cargo was purchased below that threshold.
• Urals crude loading at Baltic or Black Sea Ports was assessed at $71/bbl Aug. 18, according to Argus.
• Owners and insurers have long argued that it is impossible for them to know the exact price a cargo trades at.