oil tanker Photo:VCG

Oil tankers formed a traffic jam off the coast of Turkey on day one of the West's price cap on Russian crude, with Ankara insisting on new proof of insurance for all vessels, the Financial Times reported on Monday.

Around 19 crude oil tankers were waiting to cross Turkish waters on Monday, the report said, citing ship brokers, oil traders and satellite tracking services. A $60 per barrel price cap imposed by the Group of Seven nations, Australia and the 27 European Union states on Russian seaborne crude oil took effect this week.

The agreement allows Russian oil to be shipped to third-party countries using tankers from G7 and European Union member states, insurance companies and credit institutions only if the cargo is bought at or below the cap. According to the Financial Times' report, four oil industry executives said Turkey had demanded new proof of full insurance coverage for any vessels navigating its straits in light of the measures.

The vessels had dropped anchor near the Bosphorus and Dardanelles, the two straits linking Russia's Black Sea ports to international markets.

According to the Russia Today's report however, Dmitry Peskov, Kremlin spokesperson, said that global energy prices would see a dramatic change in light of the latest moves.

"One thing is obvious and indisputable: The adoption of these decisions is a step toward destabilizing the world energy markets," he noted.

Agencies