• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 2 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 3 days "It's a wrap" by Irina Slav
  • 4 days "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 4 days "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 4 days "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 1 day Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 6 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 8 days Central Bank Digital Currencies and the Global Monetary Reset (part of “The Great Reset”)
  • 9 days "CBDCs: Beyond the Basics" at The Corbett Report
  • 11 days "Dodgy Demand Data? The Oil Price Collapse Conspiracy" by Alex Kimani
  • 13 days Wind droughts
  • 8 days Сryptocurrency predictions
  • 9 days The Federal Reserve and Money...Aspects which are not widely known

Exxon Steers Clear Of Russia-Linked Oil Tankers

Since the G7 price cap on Russian crude oil came into force on December 5, ExxonMobil has started asking shipowners to prove that the tankers they hire out to the U.S. supermajor haven’t shipped oil cargoes linked with Russia in any way, according to a clause in contracts Bloomberg has seen.

After the price cap took effect, buyers paying $60 or less per barrel of Russia’s crude will continue to have full access to all EU and G7 insurance and financing services associated with transporting Russian crude to non-EU countries.

Exxon now wants proof that the vessels it hires haven’t shipped oil from Russia or cargoes from a person in Russia or connected with Russia, and it could terminate the vessel charter if the tanker owner fails to provide this proof, according to the clause Bloomberg refers to.


Exxon’s requirement of non-Russia-linked crude doesn’t apply to Kazakhstan’s crude CPC which is being exported from a Russian port terminal on the Black Sea.

Exxon’s new requirement, as well as a similar such requirement from another supermajor, Shell, suggests that tanker owners and operators will have to pick sides and either abide by the Western majors’ clauses and play by the G7 rules, or stick to transporting Russian crude and risk losing access to transporting crude for the biggest Western oil firms.


The price cap could further upend the tanker market and oil flow routes, as Russia is expected to increasingly use a ‘dark fleet’ of tankers to carry its crude to buyers willing to ignore the price cap.

The EU embargo on Russian imports and the price cap on Russian crude oil have already created “a two-tier market” in the tanker industry, executives said before the sanctions came into effect.

Frontline, one of the world’s biggest tanker owners, said last month that during the third quarter “the development of a two-tier market in freight has evolved as certain owners avoid carrying Russian oil due to sanctions risks or self-sanctioning whilst other owners choose to engage.”

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open 57.81 Trading Vol. 6.96M Previous Vol. 241.7B
BUY 57.15
Sell 57.00