Moscow: Urals oil loaded in the Russian Baltic and the Black Sea’s Novorossiisk ports has traded below the price cap set by Western countries since April 3, Reuters calculations based on LSEG data showed.
The price cap introduced by the Group of Seven (G7) countries does not allow Western companies to provide insurance and transportation services for Russian oil cargoes sold at more than $60 per barrel.
For most of last year, Urals traded above the price cap, but as international oil benchmark prices have fallen this year, Urals estimates dropped below $60 per barrel.
Benchmark Brent was trading around $61 a barrel on Tuesday, far from a peak above $80 a barrel hit early this year, as concerns about global economic weakness and increased output from OPEC+ have driven a sell-off.
The estimated price of Urals on a FOB Primorsk and Ust-Luga basis fell to an average of $53 per barrel in April from an average of $60.5 per barrel in January-March, the data showed. The cost of the grade on a FOB Novorossiisk basis fell to $53.5 on average in April from $61.5 on average in the first quarter of this year.
According to Reuters calculations, on Tuesday, Urals oil shipped from Russian Baltic ports on a FOB basis was valued at $49.6 per barrel. At the same time, cargoes loading from the Black Sea Novorossiisk were estimated at $49.8 per barrel.
The stabilisation of Urals below the price cap, has led some Greek shipowners to return to the market. (Reporting by Reuters; editing by Barbara Lewis)
