Data shows that the discount for Russia's Urals Crude Oil is at its deepest level since 2023.
Data shows that the world's benchmark Brent crude oil is being sold at the lowest price in three years from the Baltic ports of Russia.
Discounts are important, as they result from sanctions that the West imposed against Russia for the "war" in Ukraine. Lower oil prices have a negative impact on the government budget.
According to data from the Finance Ministry, state budget revenues from oil & gas fell by 24% between 2025 and 2020 to a 'lowest level since 2010' as oil prices in dollars declined - while the rouble appreciated.
Kommersant, citing Argus data, reported that 'the Urals Discount to Brent 'on a Free on Board basis (FOB) in the ports Primorsk & Ust-Luga between February 9-13 widened $0.70 per barrel to $28. This is the highest level seen since April 2023.
The price of Urals for the period decreased by $1.77 to $42.28 per barrel.
The data shows that the Urals FOB price in Primorsk is based on data.
Russian oil sellers are lowering prices to increase demand. Exports to India, which is the second largest buyer behind China, have dropped sharply since the U.S. announced that it would cut tariffs on Indian products if India ceased to buy Russian oil.
Kommersant reported that rising freight rates due to icy conditions on the Baltic Sea also affected the price of Urals oil. Mark Trevelyan (reporting; editing)
(source: Reuters)
