Russia is selling oil at the lowest prices since the full-scale invasion of Ukraine. Bloomberg, citing Argus Media, reports that Urals and ESPO grades are trading at multi-month lows, and the discount to Brent is nearing record levels. This is reported by Bloomberg.
Russian oil is being sold at record-scale discounts
From December 1 to 7, the price of Urals from the Baltic fell by $2.40 to $41.16 per barrel. In Novorossiysk, this grade fell even more by $2.80 to $38.28.
Other indicators:
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ESPO grade for China lost $1.60 and was trading at $52.36
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Oil for India dropped to $57.70 - the lowest since March 2023
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The Urals discount to Brent reached $25.8 - double what it was after the introduction of US sanctions against Lukoil and Rosneft.
It seems that the Russian Federation is forced to sell the raw materials with an increasing discount to retain buyers.
Russia increases oil exports despite falling prices
Demand for Russian oil is falling due to sanctions:
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India has announced plans to reduce purchases
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China halted imports after sanctions against Russian companies.
Despite this, the average export from December 1 to 7 increased to 4.24 million barrels per day - the highest level since February 2022. At the same time, part of the raw materials is stuck at sea:
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about 180 million barrels is stored in tankers
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this is 28% more than at the end of August.
Analysts indicate that excess volumes and logistical constraints are putting pressure on prices and undermining the Kremlin's financial capabilities.
Earlier, we reported that Russia signed agreements with Vietnam to circumvent sanctions, allowing to hide the origin of Russian oil and sell it above the G7 established price.