The next embargoâŠINSURANCEâŠwill give oil industry even with demand dropp high oil prices in the years to come.
The EU moves to bar insurance on ships carrying Russian oil. Itâd be a big blow : NPR.pdf (9,3 MB)
BROEKHUIZEN: Itâs the one-two punch. Itâs the second one that could be a knockout blow.
NORTHAM: The U.K. is also expected to bar insurance on tankers carrying Russian oil. Thereâs a specific arrangement for maritime insurance where two entities cover more than 90% of the worldâs tankers. Lloydâs of London covers physical damage. The International Group of P&I Clubs provides liability. John Miklus, president of the American Institute of Marine Underwriters, says vessels canât dock at most of the worldâs ports unless they have these types of insurance.
JOHN MIKLUS: In case you strike another vessel or, even more importantly, if you ground or have a casualty where youâre spilling oil. Thatâs probably the biggest, you know, remember way, way back to the Exxon Valdez or something like that.
NORTHAM: Once the insurance ban kicks in, any European tankers carrying Russian oil, which is most of them, will be barred not only from Europe and the U.K. but from other major markets like China and India, says Helima Croft, head of commodity strategy at RBC Capital Markets.
