Cost of chartering oil tankers for Russian exports soars

It now costs more than $348,000 a day to charter an oil tanker from the port of Primorsk to northwest Europe – the highest since at least 2008, according to data from the Baltic Exchange in London., cited by Reuters.

That is not good news for Russian producers who will have to apply even greater discounts to their supplies in order to find buyers of their product.

Last week, Russian Urals crude was offered at almost $35 a barrel below the Dated Brent benchmark price.

Most owners have steered clear of dealing with Russian cargoes and ports, partly as a matter of principle, and partly a self-sanctioning in anticipation of further moves by the UK, the US, Europe and other allies.

There is an even greater shortage of the smaller Aframax ships, which carry about 700,000 barrels of oil, because Russia’s Sovcomflot PJSC is the largest owner of such vessels.