IFreight rates for Russian oil shipments from the Baltic ports to India eased additional within the interval from late May to early June, thanks to excessive tanker availability, however the trend may reverse if Europe’s proposed lower cost cap comes to fruition.
The European Union has put ahead a brand new sanction bundle in opposition to Russia over Ukraine and proposed to decrease the Group of Seven nations’ worth cap on Russian crude oil to $45 a barrel from $60 a barrel.
The G7 international locations and the EU, imposed the $60 cap on Russian oil in late 2022, proscribing entry to Western delivery and insurance coverage companies for above-cap purchases in a bid to curb Moscow’s revenues.
However, as the value of Russia’s flagship Urals crude has fallen under the cap, Western shipowners have been in a position to return to its oil market.
Urals crude worth estimates in Russia’s ports have stabilised under $60 per barrel since early April, permitting extra Western delivery corporations, primarily Greek, to resume delivery companies, growing tanker availability and placing freight rates underneath stress.
By Wednesday, the price of Urals oil loaded from the Baltic Sea port of Primorsk was about $54.72 per barrel.
The value of delivery Urals oil from the Baltic ports, together with Ust-Luga, to India fell to between $5.5 million and $5.7 million from about $6 million per one-way cargo on common in April and May, and about $8 million early in March.
Russian crude delivery rates rose sharply after a brand new spherical of U.S. sanctions on Russian vitality pursuits unveiled in January took impact. Russian oil sellers had been compelled to search for new tankers to change these hit by sanctions.
Freight rates nonetheless stay above ranges in January, when the price of delivery Russian crude from the Baltic ports to India was between $4.7 million and $4.9 million per one-way cargo.
Published – June 17, 2025 11:15 am IST
