Russian Urals oil price inch below price cap on cheaper Brent

Russia’s Urals prices were below the Western price cap level of $60 per barrel on Tuesday and Wednesday after a fall in global oil prices, Reuters calculations showed on Thursday.

Urals prices in Russian ports have stayed above the $60 per barrel almost all the time since the start of 2024, despite a brief weakening below the cap level in June and in September, LSEG data shows.

But a price fall in recent days led to estimations for Urals oil loading from Baltic ports for Wednesday at $59.95 per barrel on FOB (free on board) basis, according to Reuters calculations on Thursday.

They also showed Urals oil cargoes loading from Black Sea’s Novorossiisk were assessed at $59.35 per barrel.

International benchmark Brent crude held near a two-week low on Wednesday after dropping about 7% over the prior three days on forecasts for less oil demand growth and reduced concerns that Middle East conflicts will disrupt supply.

The U.S., other Group of Seven (G7) countries and Australia imposed the price cap last year to try to reduce Russia’s revenue from seaborne oil exports as part of sanctions prompted by its military actions in Ukraine.

Under the terms of the cap, buyers can only use Western services such as shipping and insurance when Russian crude trades below $60 per barrel.
Source: Reuters (Reporting by Reuters; editing by Barbara Lewis)