| 20 April 2024, Saturday |

Oil tankers queue up off Turkey as price cap on Russian crude kicks in

On the first day of the West’s price ceiling on Russian crude, oil tankers backed up near the Turkish coast as Ankara insisted on new proofs of insurance for all boats, according to a report in the Financial Times.

According to the report, which included quotes from ship brokers, oil merchants, and satellite tracking agencies, 19 crude oil tankers were ready to enter Turkish seas on Monday.

This week, a $60 per barrel price restriction on Russian crude oil that was imposed by the Group of Seven countries, Australia, and the 27 member states of the European Union went into force. This is the newest Western sanction against Moscow for its invasion of Ukraine.

The agreement allows Russian oil to be shipped to third-party countries using tankers from G7 and European Union member states, insurance companies and credit institutions only if the cargo is bought at or below the cap.

Russia said on Monday that a Western price cap on its oil would destabilize global energy markets but would not affect its ability to sustain what it calls its “special military operation” in Ukraine.

According to the Financial Times’ report, four oil industry executives said Turkey had demanded new proof of full insurance coverage for any vessels navigating its straits in light of the measures.

Turkey’s ministry of transport and infrastructure did not immediately respond to a Reuters request for comment.

The vessels had dropped anchor near the Bosphorus and Dardanelles, the two straits linking Russia’s Black Sea ports to international markets.

  • Reuters