Bloomberg: Urals oil shipment price in the Far East is almost $20 below the price ceiling
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The cost of the Russian grade Urals oil on Wednesday, December 8, was $43.73 per barrel, writes Bloomberg with reference to Argus Media data. At the same time, ESPO Russian grade oil is trading at $67.11 per barrel, writes Bloomberg. The agency notes that Urals is trading well below the ceiling in the EU and G7 countries.
Bloomberg analysts note that the cost of Russian Urals should fall due to the loss of European markets, rising rates for its transportation and a decrease in the number of possible buyers. A lower energy price is needed to compete in Asian markets.
ESPO is a type of oil produced in Siberia. It is purchased by Asian countries. Previously, it was also supplied to the USA. In March, the US announced plans to stop buying Russian oil. Urals is an export brand of oil mixture. It is obtained by mixing heavy, sour oil from the Urals and the Volga region in the Transneft pipeline system.
On December 5, the price ceiling for Russian oil, introduced by the EU and G7 countries, as well as Australia and Norway, came into force. The marginal price is set at $60 per barrel. In the Kremlin announced response to this decision. By information Bloomberg, Russia is considering introducing a “price floor” for oil. Moscow can implement the restriction through the introduction of a fixed price for Russian oil or through the establishment of maximum discounts on it relative to foreign benchmark grades.
On the eve of Bloomberg restrictions informedthat rates for shipping between the Baltic Sea and India could be around $15 million ($20 per barrel) if loaded after 5 December. Previously, transportation on this route ranged from $9 million to $11.5 million.
More details – in the material “Kommersant” “Oil jumped to the ceiling”.
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