In the face of escalating geopolitical tensions, the US administration has initiated a sweeping probe into a fleet of 100 oil tankers, suspecting them of skirting sanctions imposed on Russian oil exports, Business Insider reports. The US Treasury Department has sent a notice to 30 ship management companies requesting information about 100 vessels that might be violating sanctions against Russian oil exports. This could be the reason why Russian oil has been trading above the imposed price cap of $60 per barrel. This move comes in line with a stringent price cap on Russian oil transported by sea, a measure designed to constrain Russia's revenue streams amid ongoing global conflicts. Following the implementation of this cap, Western service providers, including those in the transport, insurance, and finance sectors, are prohibited from facilitating transactions involving Russian oil. In October 2023, the United States sanctioned two tanker owners accused of transporting Russian oil at prices above the $60 threshold. Despite these measures, Urals, the Russian benchmark crude, continues to trade above the cap. This situation is further complicated by nations like China and India, which continue to purchase Russian oil and are not part of the sanctioning countries.
