Calculations based on LSEG's data show that since April 3, the price of Urals oil in Russian ports along the Black Sea and Baltic Sea has been below the cap set by Western nations.

The Group of Seven (G7) countries have introduced a price cap that prevents Western companies from providing insurance and transport services for Russian oil sold at over $60 per barrel.

Urals prices were above $60 per barrel for most of the last year. However, as benchmark oil prices fell this year, Urals price estimates have dropped below that level.

Benchmark Brent traded at around $61 a bar on Tuesday. This is far below the peak of $80 a bar that was reached early in this year. Concerns about global economic weakness, and an increase in production from OPEC+, have triggered a sell-off.

Data showed that the estimated price for Urals FOB Primorsk or Ust-Luga fell from $60.5 per barrel to $53 per barrel in April, down from an average of $60 per barrel between January and March. The average price of the grade FOB Novorossiisk fell from $61.5 in January-March to $53.5 in April.

Calculations show that on Tuesday, the price of Urals oil exported from Russian Baltic ports FOB was $49.6 per barrel. Similarly, the cargoes that were loading out of the Black Sea port of Novorossiisk are estimated to be $49.8 per barrel.

Some Greek shipowners have returned to the market due to the stabilisation of Urals under the price cap. Barbara Lewis, Barbara Lewis (reporting)

(source: Reuters)