In October-December, the United States increased the sanctions pressure on tanker owners for violating Western price limits when transporting Russian oil. However, raw materials from Russia are still sold above the limit. Price reductions are more influenced by quotes from reference varieties.
“The average price for Urals oil in December 2023 was $64.23 per barrel, which is 1.27 times higher than in December 2022 ($50.47 per barrel),” reports the Russian Ministry of Finance.
Thus, judging by the department’s data, since July the most popular grade of Russian oil has been trading above the limit of $60 per barrel, which was established by the G7 countries and the European Union from December 5, 2022. The Ministry of Finance reports that the average price for Urals oil in January-December 2023 was $62.99 per barrel.
As reported EADaily , in September and October the price of Urals rose to $83 and $81 per barrel. This gave Western media a reason to declare the failure of Western restrictions on Russian oil prices. Next, the United States began to impose sanctions on the owners of ships that, according to Washington, carried cargo at a price above the ceiling, and mainly companies and tankers of the Russian Sovcomflot fell under the restrictions.
The extent to which Washington’s campaign to intimidate shipowners has worked is unknown. Initially, Urals quotes were more influenced by world oil prices, which declined in the first half of 2023. It is obvious that freight rates have increased, since compared to October, the discount on Russian oil to the benchmark Brent increased from $10 per barrel to $13 in December.
Experts noted EADaily that part of Russian oil supplies may become cheaper, and part will be returned to gray schemes, when part of the price is included in the cost of freight, since some shipowners and traders can be controlled by Russian producers. Previously, Europe was the largest consumer of Russian oil. But in December 2022, it banned its import, and domestic producers had to move to new markets – mainly in Asia. This increased costs due to longer shipping times. As the Deputy Prime Minister stated Alexander Novakup to 90% of oil is supplied to China and India.
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2024-01-09 11:04:00
