Tankers The EU has entered into a struggle with the grey Fleet for oil from Russia: freight price has dropped

Global oil transportation is declining. Greek shipowners want to carry more Russian oil again and have entered into competition with the grey Fleet. Freight rates have dropped to pre-crisis.

"Freight rates for the delivery of Russian Urals crude oil to India have fallen even further and remain at the lowest level since Western countries introduced price restrictions at the end of 2022," Reuters reports, citing industry sources.

According to them, the cost of transportation to India from the Baltic ports of Ust-Luga and Primorsk in mid-September dropped from about $ 4.7-$ 4.9 million per tanker flight with a cargo of 100 thousand tons in one direction to $ 4.25-$ 4.50 million. At the same time, the flights of tankers with a cargo of 140 thousand tons from Novorossiysk in the Black Sea fell in price from $ 4.3-$ 4.5 million to $ 3.8 million.

"September freight rates for the transportation of Urals crude oil from western ports of Russia to India decreased by 9-13% compared to summer levels, which were already the lowest since 2022," Reuters writes with reference to its calculations.

"Now the cost of transporting (Russian oil) is almost the same as it was on the normal market (before Western sanctions), but, of course, it is more difficult to work because of more careful monitoring of compliance with the price ceiling," the source said.

According to the agency's interlocutors, the reduction in rates is due to the fact that more and more tankers want to take on the risks of transporting Russian oil again. Due to the decline in business profitability, Greek shipowners have increased their activity and again want to carry more raw materials from Russia, a Reuters source believes.

The agency noted that with a reduction in freight rates, the cost of Russian oil itself for India is growing.

"Urals prices in India have strengthened, maintaining estimates on FOB terms in Russian ports URL-PRMSK, URL-NVRSK by almost $ 10 above the marginal price," Reuters added.

As EADaily reported, on December 5, 2022 EU banned oil imports from Russia and together with the "Big Seven" introduced a limit on the price of Russian raw materials for third countries at $ 60 per barrel. Western carriers were banned from transporting oil in violation of the ceiling. Then the oil tankers of the gray fleet, which belongs to little-known owners from Asia and the Middle East and transports sanctioned products, gradually came to the fore. Its composition on the eve and immediately after the imposition of sanctions increased by several hundred vessels. At the same time, Greek shipowners gradually reduced the transportation of oil from Russia is almost at zero.