Russian Sanctions Disrupt Oil Trade, Boost Cost of Shipping Oil
Ton miles, a key industry measure representing the volume of cargo transported by oil tankers multiplied by the distance it travels by sea, are expected to jump by 4.3% this year, resulting in a surge in revenue for supertankers due…
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to sanctions stemming from Russia's invasion of Ukraine, Bloomberg reported. According to data from Clarkson Research Services, daily earnings for the industry's largest supertankers rose to $99,628 on Nov. 18, a mark which is four times the average of the past four years. All of this shows the disruption in the crude oil trading market, Bloomberg said. The disruption stems from Europe's move to ban purchases of Russian oil, which takes effect in December. As a result, cargoes flow instead from Asia, resulting in ships travelling thousands of more miles and driving a key aspect of demand, Bloomberg said.