Reuters: Urals oil rises in price in Asia, but is sold below the price ceiling
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Shipments of Russian Urals crude shipped in April rose in prices at the ports of India and China, the largest consumers, three sources in the industry told Reuters. However, Urals prices remain below the price ceiling due to falling Brent oil prices, they noted.
In mid-March, world oil prices fell to their lowest level since the end of 2021, then Brent strengthened from $73 to $78.
Sources estimate Urals cargoes in April at the level of $14-17 discount per barrel compared to the standard in Indian ports compared to $18-20 discount for March shipments (calculated on the basis of DES: delivered ex-ship).
The cost of April shipments of Urals Primorsk oil is about $50 per barrel (calculation based on FOB: free on board). The price for the transportation of Urals from the Baltic ports of the Russian Federation is about $7.5-$8.5 million to the ports of India and a little more than $10 million to China, the sources said.
In March, India’s purchases of Urals oil accounted for more than 65% of total seaborne exports, followed by China with 17% and Turkey in third (13%), Reuters reports citing Refinitiv data.
The average price of Urals oil in february was $49.56 per barrel, January — $49.48 per barrel, in December 2022 — $50.47 per barrel, according to the RF Ministry of Finance.
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