Russia increasingly uses Western ships due to falling oil prices

Russia is increasingly transporting oil by Western tankers as oil prices have fallen below the G7 price ceiling.

This is reported by the “Liga” with reference to Bloomberg.

Thus, the share of oil that Russia transports by Western tankers from the Baltic and Black Seas increased to 43% in April, compared to 30% in the first three months of the year.

This is due to the fall in the cost of Russian Urals oil below the price ceiling of $60/barrel set by the G7 countries. Oil prices fell after US President Donald Trump imposed large-scale tariffs on US trading partners at the beginning of the month.

When prices were above the $60/barrel threshold, Western companies could not provide Russia with their tankers, insurance or other services for transporting oil, so the Russians used “shadow fleet” vessels with unreliable owners and questionable insurance.

Since the introduction of the price ceiling in December 2022, the “shadow fleet” has provided the bulk of Russia’s oil exports. Together with Russian vessels, it transports almost all exports from Russia’s Pacific and Arctic ports, but the situation with deliveries via the Baltic and Black Seas is changing.

This creates tension in the tanker market in the Atlantic basin, increasing the rates for transporting oil between the US and Europe.

USM previously reported that about 40 violations were found on a detained Russian “shadow fleet” tanker.