Russia’s oil trade is rising as record volumes of Russian crude are carried on ‘dark fleet’ vessels
A Russian-chartered oil tanker in the sea off Morocco in an area identified by maritime technology company Windward as a hub for smuggling oil.
Europa Press | Getty Images
Recent data shows the discount on Russian oil narrowing and exports increasing despite the G-7 price cap on Russian petroleum exports and U.S. sanctions.
According to Clearview Energy Partners, Russian crude prices over the last four weeks have averaged about six cents below the Brent crude price. That is far off the trading discount when the cap was first put in place. When the cap was fully phased in, in February 2023, Russian crude was selling at a 30% discount. A year ago, the discount was about 16%.
Ukraine allies, including the U.S., have banned the import of Russian crude, while a price cap imposed on Russian oil by the G7 countries, the European Union and Australia bans the use of Western maritime services such as insurance, flagging and transportation when tankers carry Russian oil priced at or above $60 a barrel to nations where a ban is not enforced.
In a recent report to clients, Clearview Energy Partners characterized the G-7 price cap on Russian petroleum exports to third countries as “increasingly loose.”
Kevin Book, managing director of research at Clearview Energy Partners, told CNBC that despite the G-7’s June and September calls for improving the price cap, and recent guidance urging parties to Russian petroleum transactions to better scrutinize cargoes, “a U.S. pinch on Russian petroleum seems unlikely until after the election.”
“A cap enforcement crackdown runs the risk of driving up crude prices,” he said. “Plus, using ‘secondary’ sanctions to enforce the cap could push reputable insurers out of the Russian crude game entirely, leaving the market to potentially insolvent stand-ins.”
Book explained that part of the narrowing of the discount is a result of Russian oil finding additional buyers, including India and China.
Record volumes of sanctioned Russian oil were carried by the “dark fleet” and known sanctioned tankers without known insurance over September, according to a recent report from Lloyd’s List.
The Lloyd’s List Intelligence unit analysis of data from energy cargo tracking firm Vortexa revealed that 69% of all crude shipped in September was carried on dark fleet tankers and 18% was carried on tankers owned by Russian government-controlled Sovcomflot. It is the most volume moved since tracking of the monthly dark fleet data began in mid-2022 (measured by deadweight capacity of vessels.) In May, 54% was recorded, the previous high.
Chinese and Indian oil traders, refiners, and port authorities were the drivers of this growth.
Lloyd’s List determines if a tanker is part of the dark fleet based on factors including if the ship is 15 years or older, is anonymously owned or has a corporate structure designed to conceal ownership, is handling sanctioned oil trade, and is using deceptive shipping practices. Its analysis showed a flurry of flag-hopping, where a vessel changes its country registration, as well as ownership and management changes amongst the vessels in the dark fleet to avoid detection.
The dark fleet data does not include Russia’s Sovcomflot or Iran’s National Iranian Tanker Co.
Its data revealed that 5% of all Russian oil in September was transported by 11 tankers, with nine of those vessels sanctioned by the UK or EU between July and September and owned by the Russian government-controlled tanker company Sovcomflot. The remaining vessels were sanctioned by the U.S. Office of Foreign Assets Control for breaching sanctions on Syrian and Iranian oil. Those vessels are the Eternal Peace and Nebulax.
Some of the Sovcomflot tankers that Lloyd’s List identified in its report were sanctioned by the UK or EU between July and September. Some tankers changed vessel names, reflagged the vessel’s origin to Barbados, or redomiciled registered ownership to Seychelles and changed their ship management to a newly incorporated UAE-based ship manager, Avebury Shipmanagement.
Greece-owned tankers have shipped 23% of oil from Russia in September, consistently over the last three months, according to Lloyd’s List. The majority of the UK- and EU-sanctioned tankers have already discharged their oil in China.
Andy Lipow, president of Lipow Oil Associates, said despite the price cap, some ship owners have decided that it was extremely profitable to have their vessels become part of the dark fleet and risk United States and EU sanctions.
“After all, Russian oil continues to be purchased by Chinese and Indian refiners with little repercussions from the U.S. or EU,” said Lipow.
A Treasury spokesperson told CNBC, “Two years since the price cap was implemented, it is unsurprising that Putin is still sinking money into building and maintaining a shadow fleet to escape the Coalition’s sanctions: that evasion costs the Kremlin, and diverts money that would otherwise be going to the battlefield. The Price Cap Coalition continues to engage with industry to ensure compliance with the price cap and to increase Putin’s costs of going outside it.”
The number of uninsured vessels carrying sanctioned oil also increased, according to Lloyd’s List, with some 201 of the 310 tankers tracked not having insurance with the 12 clubs that form the International Group of P&I Clubs. That represented 68% of the vessels when measured by deadweight, and the lowest number of tankers tracked with IG club insurance, surpassing 67% uninsured recorded in July and August.
Lipow said the oil market is pricing in a greater probability of a war between Iran and Israel that could impact supply.
“The biggest risk to the oil market is the closure of the Straits of Hormuz, and while unlikely, if it were to happen, oil prices would rise $30 per barrel,” he said. Despite the hostilities, oil prices remain under pressure, he said, as increased production from the U.S., Canada and Guyana adds to the supply picture while OPEC+ delays the restoration of its production cuts.
The increased use of dark fleet vessels comes with greater maritime safety and environmental risks.
Lloyd’s List warned in a recent note that shipping safety has become a “casualty of economic sanctions” with attempts to enhance sanctions policy leading to greater ranks of tankers determined to evade it.
Insurance giant Allianz said in May that dark fleet tankers had been linked to more than 50 accidents.
Lipow told CNBC if these vessels were to be involved in an accident that resulted in an oil spill, the owners — assuming they could be identified and found — would simply walk away, leaving the mess and subsequently the cleanup for someone else to do.
Tesla has announced that it is launching Cybertruck in South Korea, only the fourth market where the electric pickup truck becomes available and the first outside North America.
While Tesla took reservations worldwide when unveiling the Cybertruck in 2019, the automaker never confirmed plans to launch the vehicle outside North America.
The Cybertruck is currently only available in the US, Canada, and Mexico.
By any metric, it has been a total commercial flop.
Tesla had accumulated over 1 million reservations for the vehicle and planned for a production capacity of 250,000 units per year, with CEO Elon Musk saying that it could be increased to 500,000 units.
After Tesla unveiled the production version for a much higher price than announced initially and a significantly shorter range, demand fell off a cliff, and now Tesla now has issues selling the truck at a rate of 25,000 units per year.
This quarter is expected to be better due to the end of the tax credit in the US pulling demand forward, but it could prove extremely difficult to move the Cybertruck in North America starting in October.
Tesla is now turning to South Korea to try to sell some Cybertrucks.
The American automaker has told South Korea reservation holders to confirm their orders over the next week, as it will start converting reservations into orders – something it hasn’t done since expanding into Canada and Mexico last year.
The announcement was made via X:
South Korea might sound like a strange, relatively small, distant market for the first expansion of the Cybertruck outside North America, but Tesla is extremely popular in South Korea.
In July, it sold a record number of more than 7,000 vehicles in a single month.
Tesla also has an extremely strong shareholder base in the country.
However, in South Korea, the Cybertruck is going to start at 145 million South Korean won, which is approximately $104,000 USD – making the Cybertruck about $24,000 more expensive than in the US.
It should not be easy to sell in significant volumes despite Tesla’s popularity in the market.
FTC: We use income earning auto affiliate links. More.
Environment
Hyundai is plowing billions into building more cars in the US, including a new robot-run plant
Hyundai wants to sell more vehicles in the US. The South Korean auto giant is investing an additional $5 billion to ramp up production. With billions more on the table, Hyundai will build a new robotics facility while ramping up production of Hyundai and Kia vehicles in the US. Here’s what’s coming next.
How Hyundai’s $26 billion investment will boost US sales
Have you noticed more Hyundai, Kia, and Genesis vehicles on the road lately? Over the past few years, the South Korean automakers have grown significantly in the US.
In the first half of 2025, Hyundai and Kia sold more vehicles than in any first half since entering the US market nearly 40 years ago.
Hyundai has no plans of slowing down after announcing another $5 billion investment on Tuesday, “significantly expanding the Group’s footprint in the US market.” The new funds will be used for several new projects, including a new state-of-the-art robotics facility and steel plant in Louisiana.
The new funding is in addition to the $21 billion investment Hyundai announced just a few months ago, bringing the company’s total to a whopping $26 billion.
Hyundai will use the investment over the next three years (2025 – 2028) to boost production, including Kia and Genesis vehicles.
It’s also building a new robotics innovation hub to design, manufacture, and deploy vehicles. Hyundai expects the advanced new facility will create about 25,000 jobs in the US over the next four years. It will have an annual production capacity of 30,000 units.
EVs and hybrids are driving growth
The new investment comes after Hyundai and Kia hit a milestone, selling a combined 1.5 million “eco-friendly” vehicles cumulatively in the US this week.
Hyundai’s Tucson Hybrid and the Kia Niro Hybrid are the brand’s top-selling eco-friendly cars. Meanwhile, the all-electric Hyundai IONIQ 5 remains one of the top-selling EVs in the US and is the brand’s fourth most popular eco-friendly vehicle.
With leases starting as low as $159 per month, the 2025 Hyundai IONIQ 5 is one of the most affordable, efficient EVs on the market. Hyundai has upgraded its best-selling EV with more range (now up to 318 miles), a fresh new style, and a built-in NACS port, allowing you to recharge at Tesla Superchargers.
Hyundai’s new three-row IONIQ 9 is listed for lease as low as $299 per month, and that’s for a nearly $60,000 SUV.
Both the IONIQ 5 and IONIQ 9 are built at the massive new Hyundai Motor Group Metaplant America (HMGMA) in Georgia. Kia’s EV6 and EV9 are assembled at a separate plant in Georgia.
Looking to check one out for yourself? We can help you find vehicles in your area. You can use our links below to view Hyundai and Kia models near you.
FTC: We use income earning auto affiliate links. More.
In a move that underscores the growing instability in international e-bike trade, premium electric bike maker Riese & Müller has paused all e-bike shipments to the United States, citing unpredictable steel tariffs as the final straw.
The German brand, known for its high-end urban and cargo e-bikes, informed US dealers this week that it is halting exports for the foreseeable future. While the company pointed to the recent reinstatement of a 50% tariff on certain steel components from overseas, including Germany, the broader issue here seems to be the chaotic and ever-shifting tariff landscape surrounding e-bike imports.
“We need to take a few days to carefully evaluate this situation and its implications before proceeding with further steps,” explained the company in an email to its dealers in the US, according to Bicycle Retailer.
This isn’t the first time tariffs have disrupted the flow of electric two-wheelers into the US. The Trump administration’s Section 301 tariffs targeting Chinese goods initially shook up the industry during the administration’s first term, hitting Chinese-made e-bikes and components with 25% duties before being temporarily suspended. Those tariffs whipped back and forth as exclusions came and went, then became a double whammy after the Trump administration’s “reciprocal” tariffs added even more hardships to e-bike importers in the US. And now, as of July 1, additional steel tariffs have expanded the uncertainty.
What’s unusual in Riese & Müller’s case is that most e-bikes – even expensive ones – use relatively little steel compared to aluminum. Frames, forks, wheels, and most structural components are increasingly made from aluminum alloys or carbon fiber. But with the tariff code system as vague and inconsistently enforced as it is, it seems R&M simply doesn’t want to take the risk of unexpected import costs – or the administrative mess that comes with it, including having to account for how much of a bike is produced from steel components and what the value of those components proves to be.
The impact on the US market will likely be minor in volume; Riese & Müller is a premium but somewhat boutique brand with a loyal yet small customer base. Still, this is a canary in the coal mine. If even premium brands are choosing to step away from the US market over tariff unpredictability, what happens when larger, mass-market brands start running into similar issues?
For now, dealers in the US are being told to sell through existing stock and not take additional orders until the company can determine whether it will be able to continue importing e-bikes into the US. But if the trade war tariffs contineu, this may not be the last premium brand to throw in the towel – at least temporarily.
Electrek’s Take
This isn’t just about one German e-bike brand putting things on pause – it’s a red flag for the industry. While Riese & Müller may be small in terms of US volume, their decision shows how unpredictable tariffs, even on seemingly minor components, can create enough uncertainty to shut down an entire market channel. Most e-bikes are made primarily from aluminum, not steel, but when customs enforcement can interpret tariff codes in vague or inconsistent ways, no brand wants to gamble on a five-figure shipment getting hit with a surprise 25-50% fee.
What’s more concerning is that this adds to a growing stack of trade policy hurdles facing e-bike makers: China-focused tariffs, broader “reciprocal” tariffs, battery import duties, and now steel restrictions hitting European brands too. There’s no coherent strategy here, just a patchwork of protectionist measures that hurt importers, confuse dealers, and raise prices for consumers. If the US wants to promote micromobility and clean transportation, it’s going to need smarter policies than this.
FTC: We use income earning auto affiliate links. More.
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoStory injured on diving stop, exits Red Sox game
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Sports2 years agoButton battles heat exhaustion in NASCAR debut
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment11 months agoHere are the best electric bikes you can buy at every price level in October 2024