Russia-India Oil Shipping Rates Drop as Urals Dips Below Price Cap

Charles Kennedy, a writer for Oilprice.com, reported on the recent drop in shipping costs for Russian crude from Baltic Sea ports to India. This decrease was due to the Urals crude grade price falling below the G7 price cap in early April, making more tankers available for shipments. The G7 and EU price cap mechanism allows for Western insurance and financing for Russian crude shipments to third countries if sold at or below the $60 per barrel ceiling. The price dip for Urals was a result of the market turmoil caused by U.S. tariffs and global economic concerns. As a consequence, compliant shipments can now be made from Baltic ports to India using Western-owned tankers, traders, and insurers. The price of Urals at Primorsk was recorded at $53.50 per barrel recently. Shipping rates from Russian ports to India have decreased to around $6 million per one-way shipment on average in April, down from $7 million in March. The decline in Russian crude prices may have a negative impact on the country’s economy, as warned by Russia’s Central Bank Governor Elvira Nabiullina. She stated that the oil market turmoil and tariff wars could have adverse effects on Russia’s economy, particularly through fluctuations in oil prices.