Russia’s Urals oil rises above $60 Western price cap on stronger Brent

Russia’s Urals crude oil price rose on Friday above the $60/barrel limit imposed by Western nations as the Brent price climbed back after a dramatic fall earlier this week, traders said and Reuters calculations showed.

Oil prices rose about 1% on Friday, extending their rally and putting crude on course for a weekly gain on the back of output disruption in the U.S. Gulf of Mexico after Hurricane Francine forced the evacuation of production platforms.

The U.S., other Group of Seven countries and Australia imposed the price cap last year, seeking to reduce Russia’s revenue from seaborne oil exports as part of wide-ranging sanctions.

Under the terms of the cap, suppliers of Russian oil are only able to use Western services such as shipping and insurance when Russian crude trades below $60 per barrel.

Urals oil cargo loadings from Russia’s Baltic and Black Sea port were priced around $61 per barrel on Friday on a free-on-board basis, which excludes charter costs and insurance, according to Reuters calculations.

Russia’s main export grade slipped below $60 earlier this week as the Brent price had fallen.

The Urals oil price is linked to the Brent price, which means it depends on the change in the benchmark’s value.
Source: Reuters (Reporting by Reuters; editing by Jonathan Oatis)