Russia’s crude shipments hit five-month high before sanctions

Russia’s crude shipments hit five-month high before sanctions

Russia’s seaborne crude shipments jumped to a five-month high last week, as time runs short for vessels leaving Baltic and Arctic ports to reach key destinations before European Union sanctions kick in.

Cargoes shipped from Russia rose to 3.6 million barrels a day, the highest since early June, while the less volatile four-week average was also up, reaching the most since August. The UK has followed the EU’s lead in banning its companies from providing insurance and other service to ships carrying Russian crude, unless the cargo is purchased at a price below a yet-to-be-agreed cap set by a coalition of the G-7 nations and Australia.

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This move, like the EU ban, will come into effect on Dec. 5.

London is an important insurance market for the transport of oil. Protection and indemnity insurance covers companies against risks including oil spills. The UK is also home to the International Group of P&I Clubs, an over-arching organization of mutuals from across the world that cover 95 percent of the tanker fleet for that insurance. The UK will issue waivers for contracts to ship Russian oil signed before Dec. 5 and delivered