Goldman Sachs said cheap Russian oil and rising shipping costs are keeping Russian crude flowing into markets, despite U.S. sanctions targeting Russian ships.
Goldman Sachs also added that comprehensive US sanctions on the Russian oil industry are unlikely to have a significant impact on Moscow's production due to low prices.
Moreover, the increased fees have encouraged ships not subject to sanctions to carry Russian crude, filling the void left by blacklisted tankers.
Goldman Sachs analysts said deep discounts on Russian "ESPO" crude are attracting buyers fearing price increases.
They added: "Given that the ultimate goal of sanctions is to reduce Russian oil revenues, it is expected that Western policymakers will prioritize reducing Russian revenues rather than focusing on reducing production volumes."
However, JP Morgan analysts have stressed that some risks are justified, as nearly 20% of the world's Aframax tankers are currently subject to sanctions.
They said: "Imposing sanctions on the Russian energy sector as a means of pressure in future negotiations could lead to uncertain outcomes, indicating that the complete elimination of the risk premium is not appropriate."
By our partner Nidaa al Watan (with Reuters)
