World News
P&I Clubs Issue Guidance on Russian Oil Price Cap
The International Group of Protection and Indemnity Clubs (IGP&I) today have issued a Circular offering industry guidance following the introduction of a price cap on Russian oil.
Introduced by the so-called 'Price Cap Coalition' – which includes the EU, G7, and Australia – and effective December 5, 2022, the legislation aims to reduce Russia's earnings from its oil exports while maintaining the supply of Russian oil to global markets.
Under the new Price Cap Scheme, International Group Protection and Indemnity Clubs will now be able to provide coverage for Russian crude oil shipments to countries outside of the coalition as long as the price of the cargo remains at or below $60 per barrel.
Ships with Russian crude oil on board as of December 5, 2022 will be able to complete their voyage even if the cargo has been sold above the price cap as long as it is offloaded by January 19, 2023.
As part of the new scheme's compliance requirements, Clubs, shipowners and charterers will be required to check the price of Russian oil cargoes on board ships they own, charter, or insure.
A Shipowner or Charterer that intends to transport Russian crude oil cargoes after December 5 will need to provide its P&I Club with an attestation that it will not for the duration of the period of insurance carry Russian oil cargoes which have been sold at a price that for the period it is on board the vessel has exceeded the Price Cap.
The full guidance, along with the attestation Clubs require, can be found with the relevant P&I Club, including North P&I and Skuld as follows:
- https://www.nepia.com/circulars/the-price-cap-on-russian-oil/
- https://www.skuld.com/topics/legal/sanctions/russia/the-price-cap-on-russian-oil/
A separate price cap for Russian petroleum products will be introduced on February 5, 2023.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 624.50 | 1.00 | 732.00 | 8.50 |
| Rotterdam | 571.00 | 3.00 | 758.00 | 16.50 |
| Houston | 591.50 | 4.00 | 760.00 | 5.50 |
| Fujairah | 629.00 | 0.50 | 877.50 | 3.00 |
| Global 20 Ports Average | 637.00 | 0.00 | 819.00 | 3.00 |
| Global 4 Ports Average | 604.00 | 0.00 | 782.00 | 5.50 |
| Global Average Bunker Price | 688.00 | 2.50 | 879.00 | 1.00 |
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