Tankers in the Spotlight Ahead of EU Ban and Price Cap

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It's an understatement to say uncertainty surrounds how overall Russian crude exports will be affected by the EU bans on Russian crude imports and shipping and related services for all Russian crude, in tandem with the planned G7 price cap (which allows for G7 firms to provide tankers, insurance and financial services for Russian cargoes sold under the cap, to non-EU buyers). Both are set to take effect from Dec. 5. Moscow’s position is that it will cut production rather than sell barrels under the price cap, and Russian oil companies say they are prepared for such a scenario. But the outlook may not be quite that stark. Disruptions inevitably lay ahead. But workarounds include making use of the so-called “dark fleet” that could see Russian oil exports disappear from view, as well as Moscow potentially turning an effective blind eye to selling on G7-linked shipping under the price cap — as long as those sales are to “friendly” countries.

Sanctions, Policy and Regulation, Oil Term Contracts, Oil Tankers, Oil Supply, Crude Oil, Opec-Plus Supply , Oil Prices, Ukraine Crisis
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