Both the United Kingdom and the European Union are looking at banning ships ferrying Russian oil from securing insurance following its invasion of Ukraine.
- Reports indicate that Lloyd’s of London will no longer provide insurance to ships that are delivering oil from Russia for six months, citing officials from both territories. Officials have yet to comment on the matter.
- The development comes after the EU earlier stopped insurance on oil — an essential for oil given its valuation — from Iran a decade ago, driving buyers to shun the country’s oil exports.
- The ban is expected to increase pressure on the oil market and exacerbate the issues being faced by Western countries, which are already reeling from the inflationary uptick.
Russia remains to be the top exporter of oil across the globe and the second-biggest exporter of crude oil.
OIL is up 1.20%, while USO is up 1.03%.
Source: Business Insider