Oil Tanker Rates Soar on Biden Sanctions Against Russia

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Oil tanker rates jumped Jan. 13 as the Biden administration’s sanctions on Russia’s petroleum trade threaten to cut the supply of ships while forcing traders to seek alternative sources of crude.

On Jan. 10, 10 days before Donald Trump takes over, the outgoing president sanctioned about 160 Russian oil tankers. It means about a tenth of the current crude-carrying fleet is under U.S. measures. Benchmark tanker rates jumped 39%, the most since August, tracing a rally in shares of the world’s largest pure-play owners of the ships.

The hike is just one example of how the sanctions — the most aggressive by any western power since the war in Ukraine began — are threatening to disrupt Russia’s petroleum supply chain. The vast majority of tankers sanctioned by the U.S. in…