At least 20 oil tankers queuing off Turkey face more delays to cross from Russia’s Black Sea ports to the Mediterranean as operators race to adhere to new Turkish insurance rules added ahead of a G7 price cap on Russian oil, reports Reuters citing industry sources.
Backlog at Turkish straits faces more delay
Turkish maritime authorities issued a notice seen by Reuters last month asking for additional guarantees from insurers that the transit through the Bosphorus would be covered starting from the beginning of this month.
The new rule was announced before a $60 per barrel price cap was imposed this week on Russian seaborne crude. Western insurers are required to retain proof that Russian oil covered is sold at or below that price. The industry has a 45 day transition period and a 90-day grace period if the G7 changes the price cap at a later date.
“Extra coverage from Russian P&I seems to be the way out for tanker operators,” the shipping source said, referring to protection and indemnity insurance providers. “We’ll see further delays if owners (or) operators can’t provide the required guarantees.”
Norway’s Skuld, among the top tier of P&I clubs, said such insurers cannot provide the level of detail that has been required.
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