Commodities
Black Sea Crude Exports Hit Record Freight Costs
Russia's Black Sea crude exports are facing record-high freight costs due to increased shipping risks and tanker shortages.
The Aframax rate from Novorossiysk to India rose by 2.7% in the week ending September 6, reaching $23.20 per barrel, while the rate to China increased by 3.1% to $25.70 a barrel, marking the highest export costs ever for Russia's oil from the Black Sea.
The higher shipping risks and insurance costs, combined with lower tanker availability for routes out of Novorossiysk, have contributed to the surge in freight costs.