Record Freight Costs Squeeze Russia's Black Sea Crude Exports

AI Summary

Shipping freight costs for Russian crude oil exports from the Black Sea have reached record highs due to increased threats from Ukrainian attacks and a tanker shortage. The Aframax tanker rate from Novorossiysk to India and China continues to rise, increasing the cost to ship crude oil significantly.

Heightened shipping threats from Ukrainian attacks and a shortage of tankers have pushed the freight costs for Russia’s crude oil exports from the Black Sea to record highs. In the week to September 6, the key tanker rate for shipping crude oil on an Aframax from the Black Sea port of Novorossiysk to West India and North China rose for the seventh straight week, by 2.7% and 3.1% from the week prior, respectively, Russian daily Kommersant reported on Monday, citing local pricing indexes. The cost to ship crude to India is now $23.20 per barrel…