RNFTF - Counting barrels - Russian oil exports impacted by insurance challenges
Analyst estimates of the impact to Russian oil (USO) production from US / EU sanctions have varied considerably. Recent data suggests production has been rising rapidly in June, after Rosneft (OTCPK:RNFTF) guided to increased volumes in late May. However, comments Tuesday from India's ONGC indicate that insurance challenges are impacting exports from Exxon's (XOM) former Sakhalin-1 asset. ONGC remains a partial owner of the asset, and indicated that western sanctions have impacted insurance coverage for ships transporting Russian fuel. While the headwind may be transitory, the impact could be significant this summer as EU sanctions kick in, OPEC deals with outages in Libya and the US struggles to grow production.
For further details see:
Counting barrels - Russian oil exports impacted by insurance challenges