Russia ships crude above the price cap on own ships
Tom KirkmanIndependent Project Manager
Russia is shipping its own crude oil above the EU’s imposed price cap, using its own ships and its own insurance.
I’m shocked. *Shocked* I tell you!
EU leaders must be *shocked* that Russia doesn’t need EU insurance for shipping oil.
The EU hubris is astonishing.
How dare Russia sell its oil while ignoring the U.S. and EU price cap temper tantrums.
(It’s amusing, actually.)
For the record, I think putting price caps on energy – any energy, from anywhere – will only make the global energy situation worse.
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“Russia’s ESPO grade, the crude from Russia’s Far East, is selling in Asia above the $60 price cap as it appears that Russia is currently handling the short Russian Far East-China route with Russian tankers and insurance, traders told Bloomberg on Friday.
Some independent refiners in China—the so-called teapots—have already placed orders for ESPO crude with January delivery of the grade, whose price was assessed at $67.11 per barrel on Thursday by Argus Media.
The price cap on Russian crude imposed by the EU, the G7, and Australia came into effect on Monday, but China hasn’t joined the so-called Price Cap Coalition, which bans maritime transportation services for Russian crude oil unless the oil is sold at or below $60 per barrel.
The trades with ESPO above the price cap suggest that, for now, Russia has the tankers and insurance firms to provide coverage and shipping for the ESPO grade, which can reach China from Russia’s Far East in less than a week.
Russia has used its own tankers to ship the ESPO crude and often provides insurance itself, according to traders who spoke to Bloomberg. …”