Reuters: Urals prices have exceeded the price ceiling of $60 per barrel
[ad_1]
Prices for Russian Urals oil exceeded the price ceiling due to the strengthening of grade differentials on demand in India and China, as well as a jump in Brent quotes, writes Reuters citing industry sources. The benchmark is getting more expensive against the background of the decision of the OPEC+ countries to cut production.
One of the interlocutors of the agency clarified that the price of Urals within a specific transaction is usually calculated to the weighted average Brent quote for a month or several days during the loading date. Given current prices for Brent futures, Urals shipments are now trading slightly above the price ceiling of $60 per barrel, Reuters calculates.
On March 15, the EU proposed lowering the ceiling on Russian oil to $55 per barrel. Washington took a pause and urged to wait for evaluations of the effectiveness of the price ceiling from the International Energy Agency (IEA). A little later, on April 3, the OPEC+ member countries declared further reductions in target production beyond what was agreed in October.
The G7 countries, the EU and Australia introduced a price limit for oil from Russia in December 2022. The ceiling was set at $60 per barrel. In February 2023, the cost of Russian Urals oil was well below the ceiling at $50 per barrel.
Read more about how OPEC+ production cuts raised Russian oil above $60 per barrel in Kommersant’s material. “Urals broke through the ceiling”.
[ad_2]
Source link
