Authored by Tsvetana Paraskova via OilPrice.com,
Tightening world crude provide and rising worldwide costs have raised the worth at which Russia’s crude is being bought to India at about $20 per barrel over the G7 worth cap of $60, merchants have instructed Reuters.
The Russian flagship crude grade, Urals, is being bought to one among Moscow’s prime prospects, India, at almost $80 per barrel now, or round 30% above the worth cap set by the G7 and the EU if Russian crude shipments to 3rd international locations exterior the EU are to make use of Western insurance coverage and financing.
Knowledge from merchants and Reuters calculations confirmed that free on board (FOB) Urals cargoes to load from Russia’s western ports on the Baltic Sea in October have been almost $80 a barrel for Indian refiners as of Thursday.
The tightening world provide, particularly crudes from the Center East which have excessive diesel yields, have made Russia’s Urals extra enticing, as a result of low cost at which the Russian grades commerce relative to the worldwide benchmark Brent.
In India, the place diesel is the number-one gas when it comes to consumption, Urals is in excessive demand, regardless of being rather more costly in comparison with the primary half of this 12 months.
However different related grades, if obtainable in any respect, are costlier than Urals.
“Urals costs are on the rise once more. Options are rather more costly and never simply obtainable,” one dealer with information of the Russian oil market instructed Reuters.
The worth of Urals breached the G7 worth cap in July and has averaged properly above the ceiling since then.
Urals costs averaged $74 per barrel in August, barely down from August 2022, however approach above the G7 worth cap of $60 and better than the July common of $64.37 a barrel, information launched by the Russian Finance Ministry confirmed in early September.
Between January and August 2023, the common worth of Urals was $56.58 per barrel, in comparison with a mean of $82.13 a barrel for a similar interval of 2022.
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