2024-04-10 21:28:53
Russian Urals export oil is selling almost $15 above the price ceiling set by the G7 countries, amounting to about $75 per barrel when shipped from Russian ports. Bloomberg writes about this, Day.Az reports with reference to Gazeta.ru.
Data from pricing agency Argus Media, which is used by some G7 countries, shows Russia’s flagship Urals grade is trading at around $75 a barrel when shipped from ports on the Baltic and Black Seas. This is well above the established price ceiling of $60 per barrel.
The price ceiling mechanism requires that any Western company involved in transporting Russian oil must obtain a special “certificate” guaranteeing that the cargo was worth no more than $60 per barrel. Otherwise, they are prohibited from providing their services. The fact that Argus prices are so far from this level creates a certain discrepancy.
Although Urals has remained above $60 for almost the entire year, the current jump above $70 per barrel will seriously undermine the credibility of these “credentials” for traders who wish to continue using Western services.
In March, 23% of all Russian seaborne oil supplies were insured by members of the International Group of Mutual Insurance Clubs against spills and collisions, according to Bloomberg data. This means that traders in these cases had to confirm that the cargo was worth significantly below Urals’ current market quotes.
According to a senior US Treasury official, the price cap is still having its intended effect, reducing the Kremlin’s oil revenues. However, Washington will not impose new sanctions in response to specific market fluctuations, but will continue to control Russia’s “shadow fleet.”
Subscribe to our WhatsApp channel and stay up to date with the main news!