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Tanker owners abandoning Russian trades amid price cap

OIL

Tankers previously deployed on Russian trades are now returning to the mainstream market as Russian oil trades above the G-7 price cap, according to Norwegian tanker owner Frontline.

  • “Recently we have observed that owners who previously operated in the Russian freight market have chosen to abandon this trade, increasing the supply of vessels into the non-Russian trading fleet,” Frontline said in its Q2 earnings report Aug. 24.
  • The cap prohibits western tanker owners and insurers from providing services if Urals crude is trading above $60/b. However, Urals has been consistently above this threshold since July, according to Bloomberg.

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