the discount on Russian oil has decreased threefold since the beginning of 2023 – Kommersant
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During the Russian Energy Week, Deputy Prime Minister Alexander Novak said in an interview with RT Arabic that the discount on Russian oil has decreased threefold since the beginning of 2023, to $11-12. According to him, this suggests that Russia has managed to stabilize supplies and transport and logistics chains, as well as achieve competition for Russian oil products.
“We saw at the beginning of the year: the discount on our oil reached $35-38 per barrel. Today it is approximately $11-12. Now there is a lot of competition for our products, and naturally, market demand is shaping the reduction of the discount,” he said. His words lead RT Russia.
Alexander Novak added that the reduction in the discount indicates a reduction in risks in supplies. “If there is a lot of competition, everyone wants cheap oil and petroleum products – there is a lot of demand, which means the discount may decrease. We’ll watch. We are optimistic about this,” said Mr. Novak.
In June, Russia, Saudi Arabia and other OPEC+ members agreed to extend oil production restrictions until 2024. For Russia, the quota is set at 9.828 million bpd. The voluntary production cut was extended until 2025: Russia pledged to reduce production to 9.3 million bpd. In September, Alexander Novak reported that the reduction by 300 thousand b/d would last until the end of 2023. Against the backdrop of the decision to extend restrictions on oil production until 2024, oil prices rose significantly in the second half of September. According to Alexander Novak, the draft state budget for the next three-year period assumes the average price of Urals oil at $70 per barrel.
Read more about the market situation in the Kommersant article. “Oil overflows through the ceiling”.
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