Tankers seen heading to Russia as oil price cap goes into effect on exports

As a result of the price cap on its oil exports from a coalition of Western countries, two tanker ships were heading to Russia on Monday expecting to fill their tanks with Russian crude.

The European Union agreed on Friday to cap the price of Russian oil at $60 a barrel in order to limit Moscow's ability to finance its invasion of Ukraine.

Russia will not supply oil to countries that put a price cap on it.

Russia's embassy in the US criticized what it said was the "reshaping" of free market principles after the cap was agreed upon.

Russia is moving forward with its vow to not sell its oil to countries that put a price cap on it. The G7 price cap will allow non-EU countries to import seaborne Russian crude oil, but they have to sell it at a lower price than the price cap.

According to a trade intelligence firm, there has been a decrease in the amount of Russian oil being imported into Europe.

Peter William is the trade product manager at VesselsValue. India and China are increasing seaborne imports of Russian crude.

Jacques Rousseau is the managing director of global oil and gas at Clear View Energy Partners.

According to Rousseau, the EIA projects a decrease of 1.35 MM bbl/d when compared to the forecast by the Organization of the Petroleum Exporting Countries. The magnitude of the quarter-on-quarter Russian oil production decline could be the difference between a global balance shortfall or surplus in the first quarter of next year.

Two empty tanker ships are heading to Russia.

The Maltese flag can be seen on one of the vessels.

The Moskovsky Prospect came from Bombay, India, and was sailed under the Liberian flag.

A number of crude and chemical tanker from Russia are in transit in the Black Sea and have listed various locations as their destinations, including India, the United Arab Emirates, and China, according to a MarineTraffic spokesman.

As a result of Turkey demanding proof of insurance to travel through Istanbul, tanker gridlock is building.

Between October and November, diesel exports from Russia to Europe have increased. On February 5, 2023, the sanctions on Russian diesel exports will take effect.

The start of the European winter is likely to be the reason for this. The start of the Russia-Ukraine conflict resulted in a drop in exports.

The U.S. liquified narural gas to the EU has fluctuated from a high in April to a low in September.

William said that the decrease in USA demand may have contributed to the increased exports in April.

When Russia decided to cut off natural gas supplies to Europe, the US stepped in, according to Andrew Lipow.

Lipow said that the trend will continue as Europe builds more infrastructure and the USA builds more infrastructure.