European Union and G-7 sanctions on Russian crude exports kicked in Dec. 5, and contrary to predictions, crude tanker rates didn’t spike following trade disruptions. They sank.
Sanctions on Russian exports of refined products begin in just four weeks, on Feb. 5. It has been widely predicted that this will boost rates for product tankers — the ships that carry cargoes such as diesel, gasoline and jet fuel.
Some are now questioning that assumption.
Executives of Scorpio Tankers (NYSE: STNG), the world’s largest listed product tanker owner, addressed the sanctions issue and broader fundamentals during a presentation hosted by Capital Link on Monday.