At least 19 oil tankers have been blocked on both sides in the Bosporus and Dardanelles off the coast of Turkey after the West approved a ceiling on Russian oil.
As writes Financial Times December 5, Turkey requires a new confirmation of insurance on ships – tankers will not pass through the Bosphorus without them. However, due to sanctions, ships carrying Russian oil cannot access Western marine insurance unless the oil is sold at a price of around $60 per barrel. The publication notes:
“Tanker traffic jams are the first sign that the price ceiling could disrupt global flows of Russian oil.”
As is known, an embargo on the supply of Russian oil by sea to the European Union came into force on December 5. Countries EU also agreed on an adjustable price cap at $60 per barrel. The same decision was made by the G7 countries and Australia. The $60 figure sets the limit at the current price of Russian oil, which recently fell to $51 a barrel. Some have criticized the price as not being low enough to cut off one of Russia’s main sources of income. That’s still a big discount from international benchmark Brent, which traded at $86.68 a barrel on Friday, but it could be high enough for Moscow to keep selling even as it rejects the idea of a cap.
For the global oil market, there is a risk of losing large volumes of oil from the world’s No. 2 producer. This could lead to higher gas prices for drivers around the world, causing political unrest for US President Joe Biden and other leaders. Europe is already mired in an energy crisis, where governments are facing protests over soaring costs of living and developing countries are even more vulnerable to changes in energy costs.
Earlier, the Russian president warned of “grave consequences” due to the restriction of oil prices from the Russian Federation.
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