Freight rates for tanker shipments of Russia's flagship Urals crude from western ports to India, the grade's main market, have surged in August as strong demand for vessels and mounting security risks
Freight rates for tanker shipments of Russia's flagship Urals crude from western ports to India, the grade's main market, have surged in August as strong demand for vessels and mounting security risks linked to carrying Russian oil drove up costs, three trade sources said.
The rise in shipping costs is squeezing revenues of Russian oil exporters already grappling with Western sanctions and a difficult geopolitical environment.
Freight markets have also been supported by disruption to global shipping routes stemming from conflict in the Middle East. Risks are rising for vessels transiting through the Strait of Hormuz, one of the world's most important chokepoints for oil trade.
Freight rates for Suezmax tankers carrying about 140,000 metric tons of crude from the Russian Black Sea port of Novorossiysk to India have climbed to nearly $20 million, the highest level in years, from around $13 million last month, the sources said.
The steep increase reflects growing concerns among ship owners over security risks in the Black Sea, where intensified drone attacks have repeatedly disrupted port operations and damaged vessels.
Oil shipments from Russia's western ports have fallen to about 2.3 million barrels per day in the first half of August, 15% below the
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