Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

G7 oil price cap not to blame for Turkey tanker queues, EU says

Published 09/12/2022, 08:59 pm
Updated 09/12/2022, 09:03 pm
© Reuters. Oil tankers wait at anchorage in the Black Sea off Kilyos near Istanbul, Turkey, December 8, 2022. REUTERS/Mehmet Emin Caliskan

By Kate Abnett

BRUSSELS (Reuters) - The Group of Seven countries' price cap on Russian oil is not responsible for a queue of tankers waiting in the Black Sea to pass through Istanbul's Bosphorus Strait on the way to the Mediterranean, the European Commission said.

The number of vessels queuing in the Black Sea increased on Friday to 20, according to the Tribeca shipping agency, amid talks to disperse the build-up.

Since the start of the month, Turkey has required vessels to provide proof of insurance covering their transit through the Bosphorus strait or when calling at Turkish ports, which is causing a logjam.

The queues have coincided with the introduction of a plan this week by G7 countries and the European Union to stop insurers from helping to export Russian oil by ship unless it is sold at a capped price, in an attempt to reduce Moscow's oil revenues.

"This situation is not due to the G7 oil price cap, since there is, in any case a 45-day wind-down period for seaborne Russian crude oil purchased before 5 December," a European Commission spokesperson told Reuters in emailed comments.

Under the G7 scheme's transition period, which runs to Jan. 19, services, such as insurance, can still be provided for seaborne Russian crude bought before Dec. 5, even if it was bought at a price above the cap.

The Commission spokesperson said that after this transition period, Turkish authorities can continue to verify the insurance policies of tankers in "exactly the same way as before".

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

"We are therefore in contact with the Turkish authorities to seek clarifications and are working to unblock the situation," the spokesperson said.

On Thursday, dismissing pressure from abroad over the lengthening queue, Turkey's maritime authority said it would continue to keep out of its waters oil tankers that lacked the appropriate insurance letters, and it needed time for checks.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.