• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 5 days The United States produced more crude oil than any nation, at any time.
  • 10 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 6 days How Far Have We Really Gotten With Alternative Energy
  • 9 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 9 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 11 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 11 days e-truck insanity
  • 11 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)

Russia Ships Crude Oil To India Under Price Cap Mechanism

Russia is shipping crude oil to India under the price cap mechanism on tankers insured by Western companies, in an early sign that Russia is not cutting off crude supply that complies with the G7 price cap of $60 per barrel, the Financial Times reported on Friday, citing its own analysis of insurance and shipping data.

The price cap on Russian crude imposed by the EU, the G7, and Australia came into effect on December 5. Under it, buyers paying $60 or less per barrel of Russia’s crude will have full access to all EU and G7 insurance and financing services associated with transporting Russian crude to non-EU countries.

Russia has vowed to ban the sale of Russian crude oil to buyers part of the Price Cap Coalition or if the purchase is limited by the G7/EU price cap, as a measure to counter the $60 a barrel price ceiling set by the West.

However, according to FT’s analysis on cargo data from Kpler, at least seven tankers have been loaded with Russian crude oil since December 5, and those vessels are insured by western companies. The tankers are carrying 5 million barrels of crude from Russia’s Baltic ports en route to Indian refineries, according to FT.  

Essential, the operator of one of the tankers, Ruby Phoenix, told FT “We have from our counterparts the necessary attestation that the cargo in question complies with the price cap regulations.”

The first sign that Russia isn’t backing off sales per the price cap regulations means that Indian refiners are careful and continue to prefer West-insured tankers to ship cheap Russian crude. On the other hand, these cargo sales to India signal that despite pledges to ban sales under the price cap mechanism, Russia has complied with it at least in some trades, as the logistics of an entirely ‘dark fleet’ may have not panned out the way Moscow has hoped.  

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News