Current Urals quotes are half Brent and a third below the price set by the G7 countries at $60 per barrel.
Russian Urals oil prices fell in the first global trading session in 2023 below $40 per barrel. Bloomberg reported this the other day, citing Argus Media data.
It indicated that on January 6, Urals oil, which accounts for almost 2/3 of Russia’s oil exports, cost $37.80 per barrel at the Baltic port of Primorsk. This is a record low price since spring 2020. The global benchmark – Brent crude oil – was estimated at $78.57 on the same day.
Since the beginning of 2023, the Urals have fallen in price by almost 10%. Its current quotes are half that of Brent and a third below the price ceiling set by the G7 countries at $60 per barrel.
At the same time, the European ban and G7 sanctions have made Russia increasingly dependent on China and India.
“The main reason for the price drop is probably the loss of the European market, because Russia now relies on a small group of buyers, especially China and India. The ship charter has increased, which forces the Russian oil prices have dropped to compete with supplies from the Middle East.
It will be remembered that in early December, more than 30 countries in the world set a ceiling on oil prices from Russia. The restriction indicates that companies from countries that have agreed to the sanctions cannot provide brokerage, insurance and other services for the sea transportation of Russian oil to third countries, unless the oil that it is sold at a price below $60 per barrel. An embargo on offshore oil supplies from the Russian Federation to Europe also came into effect.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.