Interview by Bloomberg - Vantage’s view on Russian sanctions
Sanctions on Russian Oil Seen Boosting Shipping Costs Until 3Q
By Elizabeth Low
Europe’s sanctions on Russian crude and fuels could send tanker rates soaring up until the third quarter of next year, with more shipping complications expected, according to Elaine Mak, head of research at Vantage Shipbrokers.
Europe’s sanctions on Russian crude have sent crude shipping costs soaring as the region seeks alternative sources of oil, upending global trade flows, Mak said in an interview
Still, a price cap agreement could shorten the period of adjustment needed
While shippers and traders are still seeking clarity on the nearing Dec. 5 sanctions on Russian crude, shipping issues could get more complicated when the Feb. deadline for banning Russian fuels nears
The available number of ships willing to transport Russian fuel -- the so-called dark fleet -- is even smaller than that for crude
That could send shipping costs for fuels soaring well into early 3Q, until recessionary pressures damp demand
Fuel trade flows from East to West will be the first to be trimmed when that happens
