An Aframax tanker carrying Russian crude to India has reversed course in the Baltic Sea after U.S. sanctions on Rosneft. The crude on board comes from Rosneft, and the tanker was bound for the Indian port of Sikka. Industry observers are skeptical that the sanctions will cause lasting disruptions in oil markets.

The latest U.S. sanctions targeted Russia’s two biggest oil exporters, Rosneft and Lukoil, who account for half of Russia’s total oil exports. Lukoil announced plans to sell its overseas business following the sanctions. The sanctions are not secondary, so purchases from non-U.S. entities remain legally permissible.

Some experts warn that effective sanctions could lead to higher oil prices, impacting large importers in the West. The sanctions against Russia’s oil giants are seen as a signaling operation to inflict damage without destabilizing the global economy. Industry observers question the long-term impact on oil markets and prices.

Read more at Yahoo Finance: Russian Oil Tanker Turns Back Under U.S. Sanctions Threat