Novak: discount on Russian oil will decrease in 4 months

Over the past month, the discount on Russian oil has increased due to the lengthening of export routes, Deputy Prime Minister Alexander Novak said. According to him, the price will decrease after the stabilization of new supply chains. It is expected that this will take about four months.

In an interview TASS Mr. Novak said that in 2023 “many uncertainties associated with working in foreign markets” are expected. “However, it is clear that our product is in demand on the international market. Of course, routes are lengthening, so the discount has become higher than a month ago,” he says.

Alexander Novak clarified that the discount on Russian oil had earlier sharply increased in March-April. After a sharp rise, the price halved within about four months, the vice premier added. Lon also said that Russia will increase oil exports in 2022 by 7.5%, to 242 million tons.

Since December 5, the EU embargo on oil from Russia has been in effect, and from the same day a price ceiling was introduced for sea supplies of this fuel. The maximum price was set at $60 per barrel. Mr Novak saidthat, in response, Russia will ban the supply of oil and petroleum products to countries that will require compliance with the price ceiling. Expectedthat a decree on this will be signed today or tomorrow.

Read about the situation on the market in the material “A new rise in prices is expected from the oil market”.

Laura Keffer