Oil export duty to be increased by $4.5
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The export duty on oil from September 1 will increase by $4.5 and will amount to $21.4 per ton, informed The Ministry of Finance of Russia on its website.
According to the ministry, the average price for Urals oil from July 15 to August 14 was $70.33/bbl. or $513.4 per ton, and on the North Sea Dated (analogous to the Brent quote, calculated by Argus and used in taxation) – $84.23/bbl.
“According to the calculations of the Russian Ministry of Finance, the export duty on oil in the Russian Federation from September 1, 2023 will increase by $4.5 and will amount to $21.4 per ton,” the report says.
The duty on the export of light oil products and oils will increase to $6.4 per ton.
The fact that the price of a barrel of Urals on a FOB basis (“loaded on board”) in the Baltic and Black Seas in early August exceeded $70 was previously reported by the International Energy Agency (IEA). The cost of Urals, as noted in the IEA report, on July 12 overcame the price ceiling of $60/bbl established under the sanctions against the Russian Federation. As a result, the weighted average cost of this grade in July 2023 on an FOB basis increased by almost 16% compared to June to $64.41/bbl. Discount on Urals in July of this year decreased by $4/bbl. on FOB basis in the Black and Baltic Seas up to $18.75/bbl. to North Sea Dated.
Since March this year, Russia has voluntarily reduced oil production by 500,000 barrels per day compared to February values. According to the decision of the Russian authorities, this level of production will remain until the end of 2024. Since May 1, eight more OPEC+ countries have joined the production cuts. The total decline in production, including the Russian Federation, will amount to 1.66 million barrels per day until the end of 2023.
In addition, Saudi Arabia decided to further reduce production by 1 million barrels per day in July-September this year.
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