Urals crude differentials to dated Brent were unchanged on Friday, while freight rates for Russian oil shipments rose by 25% this week amid fresh U.S. sanctions, traders said.
The U.S. imposed sanctions on 183 vessels involved in Moscow’s energy exports a week ago.
The cost of a voyage for an Aframax vessel from Russia’s Baltic ports to India rose to $6.0-6.3 million for a one-way trip, from about $4.7-4.9 million a week ago, the sources said.
The cost from the Black Sea port of Novorossiisk to India for Suezmax tankers, which can hold 140,000 metric tons, rose to around $5.5 million for a one-way trip from $4.3-$4.5 million over the same period, the sources added.
Traders expected freight rates for Russian oil to rise further in coming weeks amid tight vessel availability, putting additional pressure on sellers’ revenues.
PLATTS WINDOW
No bids or offers were shown for Urals, Azeri BTC or CPC Blend in the Platts window on Friday.
NEWS
Six Russian oil tankers still under construction by Russia’s Zvezda shipyard were included in U.S. sanctions imposed last week, the first time Washington is known to have banned tankers before they even set sail, much less carried sanctioned cargo.
Russian seaborne oil product exports fell by almost 10% in 2024 after Ukrainian drone attacks damaged major refineries and as higher funding costs and a government gasoline export ban added to pressure from Western sanctions, industry sources said.
Source: Reuters