The price of Russian Urals oil in the ports of the Baltic Sea fell below the ceiling of 60 dollars per barrel. Reuters reported, citing two traders, that the drop in prices was caused by new US sanctions against UAE traders and the weakening of the global oil price.
Freight rates for oil deliveries to the Urals from the Russian ports of Primorsk and Ust-Luga rose from $8 million last week to $9.2-9.5 million.
Brent futures rose to $78.22 per barrel (+1% from the price at the end of last week).
As Reuters writes, the estimated price of Urals on FOB terms for delivery from the Baltic Sea to India fell to 58-59 dollars per barrel on November 17. “Urals prices have approached the level of the price ceiling, and in some cases even below it is an obvious trend,” noted the Reuters correspondent.
In December 2022, the G7 countries, the European Union and Australia agreed on a price floor under which international companies can only transport or import Russian oil at a price below $60 per barrel.
In September 2023, Urals oil was trading at $86. Analytical agency Kpler predicts that Russia will increase oil supplies amid higher prices. At the beginning of December, the agency expected a decrease in sea freight.