Oil Tankers Queue Off The Turkey Coast As Price Cap On Russia’s Oil Kicks In

Oil tankers led to traffic jam off the Turkey coast on day one of the West’s reported price cap on Russia’s crude, with Ankara placing demands for a new proof of insurance for vessels, the Financial Times mentioned on Monday.

On Monday, about 19 crude oil tankers were reportedly waiting to cross Turkish waters, the report mentioned, citing oil traders, ship brokers, and other satellite tracking services.

A $60/barrel price cap placed by Australia, the Group of Seven nations, and the 27 EU states on Russia’s seaborne crude oil started taking effect this week, the most recent Western measure to penalize Moscow over its war in Ukraine.

The agreement permits Russia’s oil to be shipped to third-party nations deploying tankers from G7 and EU member states, insurance firms, and credit institutions if the cargo is purchased at or below the placed cap.

Russia stated on Monday that a Western price cap on its oil would help destabilize global energy markets. However, it’d not affect the ability to sustain what it refers to as a “special military operation” in Ukraine.

Per the Financial Times report, four executives from the oil industry said that Turkey had reportedly demanded new proof of insurance coverage for vessels navigating straits in light of the current measures.

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

The vessels dropped their anchors close to the Dardanelles and Bosphorus, the two straits linking the Black Sea ports of Russia to the international markets.

References: Reuters, Financial Times

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Source: Maritime Shipping News