Why the price of Urals rose above $70 per barrel
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The price of a barrel of Russian Urals oil on an FOB basis (“loaded on board”) in the Baltic and Black Seas at the beginning of August 2023 exceeded $70. This is reported in the report of the International Energy Agency (IEA) with reference to Argus data. According to the Russian Ministry of Finance, which also uses Argus information, the last time such a price was recorded for Urals was in October 2022.
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 the North Sea Dated (analogous to the Brent quote, calculated by Argus and used in taxation), and in the first days of August – up to $16.
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