Bloomberg: Russian oil prices have fallen by 30 percent since the end of June
A slight increase in the volume of Russian oil supplies by sea in recent weeks does not allow Moscow to count on greater income, because the price of the main export grade Urals is falling at a faster pace, according to its own calculations writes Bloomberg.
According to the agency’s estimates, since the end of June the price of Urals has fallen by almost 30 percent, which is due to both the general fall in world oil prices and the increase in the discount. Thus, in the second week of September alone, Urals fell by three dollars, falling below the price ceiling of $60 per barrel.
Average four-week export volumes rose by 80,000 barrels per day to 3.21 million barrels, while the weekly flow, considered less indicative, rose by 110,000 barrels per day.
The problem for oil exporters remains weak economic growth in China and the boom in electric vehicles, which reduces the need for oil. Against this background, small, outdated oil refineries (ORs), the so-called “teapots” that actively purchased sanctioned oil, including from Venezuela, Iran and Russia, have even begun to go bankrupt.
A separate issue remains Russia’s compliance with OPEC+ quotas. At the end of August, Deputy Prime Minister Alexander Novak claimed that oil companies had reached the agreement to reduce production, while in previous months they had exceeded the limits. In September and October, Moscow promised to compensate for violations, but there are no signs of this.
At the same time, market sources explain the growth in exports by the ongoing problems at oil refineries, where scheduled and unscheduled repairs were not completed on time, which means that additional volumes of raw materials have formed on the market.
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