Russian oil in decline. Urals prices lowest since mid-2020.

Russian Urals oil fell to $37. per barrel and its price is the lowest since mid-2020 – said Refleks analysts. They added that since the entry into force of American sanctions on Russian oil companies, Urals oil has become cheaper by over USD 13, and Brent crude oil prices have fallen by USD 0.30.

As Refleks analysts pointed out on Monday, the prices of Russian Urals oil FOB Rotterdam dropped to $37. per barrel and are the lowest since mid-2020, i.e. the period of the coronavirus pandemic. During the year, Urals crude oil became cheaper by USD 25.78. on a barrel. At the same time, Brent crude oil fell by $11.53. on a barrel.

Analysts added that Russian Urals oil is currently priced at $25 per barrel. cheaper than Brent crude oil.

“In total, since November 21, i.e. the moment the American sanctions entered into force, Urals oil has become cheaper by USD 13.10 per barrel. In the same period, Brent oil prices have dropped symbolically by USD 0.30 per barrel,” Refleks reported.

They noted that declines in the prices of Russian crude oil accelerated significantly after the U.S. Department of the Treasury announced sanctions on the Russian oil companies Rosneft, Lukoil, their subsidiaries and Gazprombank in November. “In his justification, the US Secretary of State emphasized that the sanctions are the result of the Russian president's lack of consent to end the war with Ukraine. Rosneft controls over half of Russia's oil production, and the share of both companies in total Russian crude oil exports by sea and via pipelines is over 60 percent.” – explained.

According to analysts, “downward pressure on the prices” of Russian oil, in addition to sanctions, is exerted by growing competition on the Asian market, where over 85% of crude oil is supplied. exported Russian crude oil. “Saudi Arabia, after reducing the sales prices of its crude oil for Asian markets for December, decided to make a similar move in January,” experts noted.

They added that Saudi Aramco has set the official selling price of its flagship Arab Light crude oil for Asian markets in January at $0.60. per barrel above Oman/Dubai benchmark prices. “The differential was reduced monthly by $0.40 per barrel and will be the lowest since the beginning of 2021,” it was noted. (PAP)

ab/ mick/