Key facts
- Shipping crude oil from Russia's Black Sea port of Novorossiysk to India now costs $23.20 a barrel.
- Shipping crude oil from Novorossiysk to China now costs $25.70 a barrel.
- These are the highest export costs ever recorded for Russian oil from the Black Sea to Asia.
- Tanker availability is reduced due to vessels being tied up in the Middle East and Baltic Sea.
- Ukrainian strikes on Novorossiysk have increased shipping risks and insurance costs.
- Some Ukrainian attacks have caused damages necessitating temporary suspension of oil loadings at Novorossiysk and the CPC terminal.
Freight rates for Aframax tankers shipping crude oil from Russia's Black Sea port of Novorossiysk have climbed for seven consecutive weeks, reaching record highs for exports to India and China. The cost to ship a barrel of crude to India has risen to $23.20, and to China, it is $25.70. This surge is attributed to a shortage of available tankers, with many vessels occupied on longer routes in the Middle East and Baltic Sea, coupled with heightened security risks from Ukrainian strikes on Novorossiysk. These attacks have, at times, necessitated the temporary suspension of oil loadings at Novorossiysk and the nearby Caspian Pipeline Consortium (CPC) terminal. Despite the increased shipping costs, analysts note that profits are still being made amid the rally in international crude oil prices.