Russia is finding it easier to secure ships for oil exports thanks to a drop in global oil prices.
Western-owned and insured tankers are now available to transport Russian oil.
This change follows the plunge in oil prices amid the turbulence caused by US President Donald Trump’s import tariffs. The price of Russian Urals oil has fallen well below $60 per barrel, dipping under the cap imposed by Western powers in response to Russia’s invasion of Ukraine.
When prices were above this threshold, Russia had to rely on a shadow fleet of older ships, operated by unknown companies based in countries outside the reach of Western authorities and often with inadequate insurance. According to Bloomberg, there is now an increasing use of higher-quality Western ships.
Sources have informed Bloomberg that the increased use of Western ships for transporting Russian cargo is tightening the market for these vessels across the Atlantic region. Consequently, the rates for transporting US crude oil to Europe have risen significantly over the past month. The same applies to the rates for transporting Colombian oil to Texas.
