The latest US sanctions on Russian oil shipments will affect 10% of the global tanker fleet and hinder dozens of ships from docking at major ports worldwide, according to data from Reuters analyzed on Monday.
The measures, announced by Washington on January 10, aim to reduce Moscow’s earnings. At least 65 tankers are unable to dock and are anchored off the coasts of China, Russia, and other key shipping hubs, the news agency reported, without specifying how many of the ships have a current connection to Russia.
Five of the ships are moored off Chinese ports, seven near Singapore, and others near the Russian Baltic coast and in the Far East. Additional ships are stuck near Iranian ports and the Suez Canal, further exacerbating the global disruptions.
The US Treasury Department’s sanctions package targets Russian oil producers Gazprom Neft and Surgutneftegaz, as well as 183 ships that previously transported Russian crude oil. The restrictions, in addition to earlier measures, have limited the availability of ships and disrupted oil trade flows.
Some ports have reportedly begun to implement stricter regulations, banning ships under US sanctions from docking, which has further strained the shipping industry.
The decline in available ships has driven up the average daily earnings for supertankers, with market data showing a Monday increase of over 10% to $26,000 per day.
Industry experts predict the consequences could extend beyond the shipping sector. “The impact of these sanctions will likely be beneficial for the tanker market, as the supply of ships in the broader fleet shrinks, but the real potential strength would come if other exporters fill the gap” said Omar Nokta, an analyst at Jefferies, in a Monday note.
Meanwhile, the increased demand for non-sanctioned tankers has already begun to reshape trade flows. “The rising demand for exports to India and China from outside Russia will increase the demand for non-sanctioned tankers” said the trade analysis platform Kpler.
Oil prices gave back some of their gains on Tuesday, but remained near their four-month highs, as the effects of the intensified US sanctions on Russian oil continue to be in the spotlight of the market.
Brent futures fell 65 cents to $80 per barrel, while US crude oil of the West Texas Intermediate (WTI) variety dropped 80 cents to $78 per barrel.