After the European Union imposed price limits on Russian oil, Turkey required all ships to provide new insurance certificates, and the supply of crude oil market was constantly disrupted.

On Thursday, according to media reports, tankers piled up in Turkish waters.26 tankers carrying more than 23 million barrels of oil from Kazakhstan, unable to pass through the Turkish StraitThe Turkish Strait is an important channel for oil tankers to transport from the Black Sea to the international market.

The Turkish government requires ships carrying crude oil to provide letters from insurance companies to ensure that these ships enjoy insurance coverage in Turkish waters.

The request is in response to Western sanctions against Rosneft, which came into effect on Monday. The price cap of $60 per barrel imposed by the Group of Seven, Australia and the European Union on Russian seaborne crude oil came into effect this week. The sanctions against Russian crude oil are only allowed to insure crude oil purchased at a price of no more than $60 a barrel. This means that it is impossible for the Turkish government to use the traditional verification method (queried on the website of the insurance company) to determine whether the ship is insured.

At present, US and British officials are urging Turkey to reconsider the insurance certificate requirement.In particular, consideration should be given to not hindering Kazakh goods. It is worth mentioning that oil produced by companies such as Chevron Corp and Exxon Mobil Corp in Kazakhstan is exported through pipelines to ports along the Black Sea coast of Russia, then loaded with tankers and shipped to the Mediterranean through the Turkish Strait.

For insurance companies, issuing a written insurance certificate is not only a requirement, but also sets a precedent for other places to follow.

The congestion may worsen.

Since the first day of the Rosneft oil price limit, 35 oil tankers have left Russia. Turkey's new insurance rules for oil tankers are hampering the progress of oil tankers, with 16 tankers loaded with Russian crude oil waiting for new Turkish insurance permits, an average increase of about 47 per cent a week, according to Marine Traffic.

Ashiq, Marine Traffic's director for the western United States, said:

Most of the ships heading from the north to the Bosporus (leaving the Black Sea) are fully loaded and most of the crude oil will flow to Turkey, followed by Greece, Italy and India.

Graham Close, a senior trade analyst, pointed out that as a "shadow fleet" of refineries in Asian countries such as India seeks access to Russian oilThe bottleneck of crude oil tankers in Turkey's Bosporus Strait is likely to worsen.

The West "throws the pot" Turkey

At least 22 tankers have been blocked from passing through Turkish waters because of concerns that tankers carrying Russian crude oil may not be insured by European marine insurance because of regulations. But two Western officials saidThese ships should be allowed to pass through, and most of the oil loaded comes from Kazakhstan, not Russia.

Turkey said:

The G7 price cap increases the risk of uninsured ships in its waters and requires all tankers crossing the Turkish Strait to prove that they have effective insurance against oil spills and collisions.

Western officials defended the price cap mechanism and argued that it was unnecessary for Turkey to require the shipper to provide a written guarantee. Officials involved in setting the price cap said:

The price cap policy does not require ships to seek additional insurance guarantees for each voyage in accordance with Turkish regulations. These interruptions are caused by Turkish regulations, not price cap policies.

In the face of western sanctions, Russia said it would not sell oil to any country that signed the price cap and formed a "shadow fleet" to circumvent the restrictions and continue to ship crude oil to places such as India.