Russia sells Urals oil at 20 dollars above the Price Cap imposed by the G7
Tightening global crude supplies and rising international prices have raised the price at which Russian crude is sold to India to around $20 a barrel compared to the G7 price cap of $60, officials said. trader at Reuters.
Russia's flagship Urals crude is being sold to one of Moscow's main customers, India, at nearly $80 a barrel, or about 30% higher than the maximum price set by the G7 and the EU, making yes they cannot use Western transport and insurance services, but, evidently, they find someone capable of providing them.
The price is consistent with international prices for this type of oil.
Trader data and Reuters calculations showed free-on-board (FOB) Urals cargoes to be loaded from Russia's western ports on the Baltic Sea in October were nearly $80 a barrel for Indian refiners as of Thursday.
The contraction in global supply, particularly of crude oil from the Middle East which has high returns in diesel production, has made the Russian Urals more attractive, due to the discount at which Russian grades trade compared to the international benchmark Brent. In India, where diesel is the number one fuel in terms of consumption, Urals are in great demand, despite the fact that they are much more expensive than in the first half of this year.
Furthermore, there are other equivalent types of oil on the market that cost much more than Urals.
“Urals prices are rising again. The alternatives are much more expensive and not easily available,” a trader with knowledge of the Russian oil market told Reuters.
The price of the Urals surpassed the G7 ceiling in July and has remained well above the ceiling on average since then.
At this point the failure of the sanctions policy is evident, which has simply led to the birth of service markets alternative to the European ones for transport and insurance services. After all, a convenient product always reaches the end user, one way or another. The new intermediaries will be very happy to have found a source of income…
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The article Russia sells Urals oil at 20 dollars above the Price Cap imposed by the G7 comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-russia-vende-il-petrolio-urals-a-20-dollari-oltre-il-price-cap-imposto-dal-g7/ on Thu, 28 Sep 2023 16:16:49 +0000.