Russian Urals crude shipping costs to India hit record highs

Shipping costs for Russian Urals crude oil from Black Sea ports to India have reached record highs. The cost for a single one-way voyage using a Suezmax tanker, with a capacity of approximately 140,000 metric tons, has risen to between $27 million and $30 million, up from roughly $19 million in September.

Industry traders and market data indicate that freight rates for Urals crude to Asian markets, primarily India and China, are now reaching $30 per barrel or more. This surge is attributed to increased risks in the Black Sea and a continuous rise in global tanker market rates.

These elevated transportation expenses are limiting Russia's ability to fully benefit from high oil prices, as Moscow is forced to utilize longer and more expensive export routes to reach Asian buyers. Additionally, shipments from Baltic ports via Aframax tankers to Western India have also seen significant increases, rising to an average of $21 million to $23 million per one-way trip compared to $13 million to $16 million in September.