Freight rates for tanker shipments of Urals crude from Russia’s western ports to India eased further in June from last month due to seasonal factors, rising availability of vessels and shippers' optimism regarding the opening of the Strait of Hormuz, two trade sources said.
The US and Iran agreed to a peace deal, which should end the war in Iran and open free passage via the Strait of Hormuz.
The blockade of the strait led to a dramatic rise in freight rates worldwide, including in the Russian oil shipping market, sources said.
The deal is expected to facilitate shipping via the strait and cool freight rates.
According to sources, the cost of shipping Aframax cargoes from Primorsk to India fell to as low as $10 million to $11 million, from more than $13 million in late May.
The cost of shipping Urals from the Black Sea port of Novorossiisk to India on Suezmax tankers declined to $15 million from $18 million.
Sources also noted that the summer season facilitates tanker loading at Russia’s western ports and increases vessel turnaround due to more favourable weather conditions.
An expected decline in exports in June had cooled the tanker market. However, the sources added that the final June export programme may exceed expectations due to ongoing drone strikes on Russian refineries which are freeing up available crude oil volumes.
(Reporting by Reuters; Editing by Kirsten Donovan)
