The price of Russian Urals oil has increased significantly due to the ongoing war in Iran, even as many buyers continue to avoid it because of sanctions related to Ukraine. With Saudi Arabian oil exports threatened by Iran’s actions, interest in Russian oil has grown. On Monday, Urals crude was priced at about $76 per barrel, up from $45 just two weeks earlier. The cost of a Urals cargo from the Baltic Sea port of Primorsk rose to around $54 million this week, compared to $35 million in February.
Earlier this year, Russian sellers experienced nearly negative margins on oil exports. Despite attempts by the G7 and others to limit Russian oil prices, Urals is currently selling at a higher price than Brent crude for the first time in history for deliveries to India. Recently, the U. S. allowed Indian refiners to resume imports of Russian crude already on tankers.
Costs for Russian sellers are rising sharply due to limited shipping options, with freight rates from Baltic Sea ports to India nearly doubling since February. Brent oil prices also increased, reaching over $119 a barrel, influenced by supply cuts from Gulf producers.
With information from Reuters
