After Trump's sanctions, Russian Urals oil is sold at a record discount
After implementation sanctions by the Donald Trump administration against leading Russian oil companies, in particular «Lukoil and Rosneft», Urals oil price has fallen sharply.
As reported by the relevant media, discount of Russian Urals crude oil relative to the Brent benchmark as of 10 November in ports Primorsk and Novorossiysk reached $19.4 per barrel - is the biggest discount in recent years.
Record price drop
Before the sanctions were imposed, the discount was at $11-12, however after export restrictions and blocking of some vessels by Russian traders forced to sell oil at a record discount, to retain its markets.
According to analysts, with this difference, the price of Urals is currently around $45.5 per barrel, while Brent is trading in the range of $64-65.
Context.
The new US sanctions are aimed at of the Russian oil sector, which is the main source of funding for the war against Ukraine.
The package of restrictions includes a ban on technology exports, blocking of maritime transport and a ban on cooperation with a number of companies from the “black list”.
According to energy experts, Russia will lose up to $10bn in monthly revenues, if the Urals discount remains at the current level.
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