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Russian Sanctions to Support Tanker Demand: Maersk

OIL

Maersk Tankers Chief Executive Christian M. Ingerslev said he expected tanker demand to be healthy as Russian oil continue to flow, but to different markets.

  • "With new sanctions coming into place, we expect that Russian oil will continue to be moved. But now the importing countries will not have the short haul distance, it will be long haul," he said.
  • "Europe, which previously imported 1 million barrels a day, will need to source the volume for instance from the Middle East, which in turn will lead to more demand." Ingerslav said.
  • "The difference between spot and time charter markets is quite big and it’s attractive to be in the spot market," he said, adding "Longer distances create more uncertainty operationally and customers need to start planning a lot longer,".
  • "The price cap is on paper clear, but in practical terms we need to see how it will take shape," Ingerslev said.
  • "How does it work with P&I clubs (ship insurers), banks having to handle the transactions? The owners are responsible for what is transported under the price cap, and it is not easy."

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