Freight rates for shipping Urals crude from Russia's western ports to Asia retreated from record highs in early November, amid a sharp decline in global oil prices and tanker costs, trading sources said.
Crude loadings for the month could exceed the planned volume after renewed drone attacks on Russian refineries freed up more oil for export, which could prevent Urals freight rates from falling more sharply, the sources added.
Oil prices fell below $90 a barrel on Tuesday for the first time since August after US President Donald Trump downplayed the need for additional military action against Iran, easing fears of sustained supply disruptions from the Middle East.
In late October, the cost of shipping Urals crude to India stood at record highs of around $30 per barrel or more, depending on the shipowner and destination port. That has since fallen to around $25.
The cost of transporting cargoes of around 100,000 tonnes aboard Aframax tankers from Russia's Baltic ports to western India is now averaging around $19 million to $21 million for a one-way voyage, down from about $23 million in late October, the sources said.
Freight rates for Suezmax tankers with a capacity of around 140,000 tonnes on the Baltic-to-India route are now around $23 million for a one-way voyage, compared with $27 million at the end of last month.
The cost of transporting Urals crude from the Black Sea to India aboard Suezmax tankers has eased to around $25 million per one-way voyage from record levels near $30 million, according to the sources.
The decline in Urals freight rates comes amid a broader correction in the global tanker market.
According to shipbroker Riverlake, the cost of shipping crude on Mediterranean routes aboard Suezmax tankers had halved by Monday from 16 October, falling to Worldscale 552.5 from Worldscale 1,100.
(Reporting by Reuters; Editing by Kirsten Donovan)