According to trading giant Trafigura, Russia relies on a “shadow fleet” of tankers to move crude and crude products. The trading firm said the fleet is about 600 ships.
Bloomberg said the surge in tanker rates has been “spurred in part by a bifurcation of the fleet with some tankers serving Moscow’s interests and others the international market. It highlights a possible flipside of aggressive measures aimed at limiting Russia’s petroleum revenues.”
“Russian volumes continue to flow at more or less the same rate and that takes up a lot of ships.”
“Ultimately, the spike shows demand is pretty good, and the fundamentals are strong,” Lars Bastian Ostereng, an analyst at Arctic Securities.
About 400 tankers, or 20% of the global fleet, recently “switched” from hauling fuels for traditional countries to carrying Russian petroleum products, Trafigura’s co-head of oil trading Ben Luckock said in a recent Bloomberg interview. That has reduced the number of tankers for traditional routes and is leading to the skyrocketing cost of freight.Tanker Rates To Haul Gasoline Soar 400% After Russian Sanctions | ZeroHedge
In other words, the Russian sanctions and price caps are doing the exact opposite of what they intended, and RAISING PRICES FOR US, EU, UK customers..
Russia making the same amount, selling the same amount and making more PROFIT due to the rise in oil prices, thanks to these sanctions.