Russia appears to be on the cusp of a debilitating oil-freight transportation problem because of US sanctions, writes Bloomberg oil strategist Julian Lee.
On Jan. 10, the US Treasury sanctioned 161 oil tankers for their role in moving Russian oil. It was part of a raft of measures against Moscow imposed by the outgoing Biden administration that President Donald Trump has yet to dial down. Indeed, there appears to be a chance he’ll go even harder prior to any Ukraine peace talks.
The cost of finding a tanker to carry Russia’s flagship Urals oil to Asia has already jumped by almost 50% since the measures were introduced, according to data from Argus Media. The