Urals oil has no buyers in Europe, so the prices should be such as to attract customers from afar, market analysts explained.
The price of Russian Urals crude fell to $43.73, below the announced price ceiling. Bloomberg reported this the other day, citing Argus Medi data.
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It is indicated that after Russia lost its historical European market, buyers of Urals from Western ports were, first of all, China and India. Therefore, the price of Russian oil will have to come down to compete with the more traditional Asian suppliers. At the same time, the Urals type accounted for almost 60% of Russia’s maritime exports last year.
In turn, ESPO oil, which comes to Asian markets from eastern Siberia, traded at $68.72 per barrel.
According to Michael Carolan, who is in charge of tracking Europe, Africa and the Middle East (EMEA region) at Argus, the loss of the European market, rather than the imposition of a price cap, was the factor that influenced the decline in the prices of Ural to a greater extent.
“The Urals do not have buyers nearby, so the prices should be such as to attract customers from afar. This is due to sanctions and past self-sanctions from European refineries, and not caps of the price,” he explained.
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.
On the night of December 9, world oil prices were trading at the lowest level for the year – about 76.4 dollars per barrel.
In this regard, Russian President Vladimir Putin believes that “the price of oil will rise.”
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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.