The price of russian Urals oil has fallen below the price ceiling of USD 60 per barrel set by Western countries in russian ports due to the collapse of Brent benchmark quotations amid the truce between Iran and Israel, according to industry sources and Reuters calculations.
This was reported by the enkorr publication, the Ukrainian News agency reports.
The report states that the price of Brent futures contracts began to rise sharply on June 13, when Israel launched a military operation against Iran, and reached a peak of USD 78.85 per barrel on June 19, but fell by USD 10 per barrel at the beginning of this week after the ceasefire between Israel and Iran.
According to Reuters, the price of Urals on a FOB basis in the Baltic ports of the russian federation, Primorsk and Ust-Luga, with shipment in June, was about USD 55-$56 per barrel as of Wednesday.
The cost of cargoes is estimated for the previous business day.
At the peaks of last week, Urals prices in the ports of Primorsk, Ust-Luga and Novorossiysk were about USD 65-66 per barrel.
The price “ceiling” established by the G7 countries does not allow Western companies to provide insurance and transportation services for oil sea cargoes from the Russian Federation sold for more than USD 60 per barrel.
The increase in prices for Urals in daily terms above the price “ceiling” does not mean that market participants are violating sanctions, since the price of a specific transaction is usually calculated based on the average price for several days or a month.
Urals oil is priced relative to the price of Brent, which is why russian oil prices fluctuate.
As the Ukrainian News agency earlier reported, Israel's war with Iran has become a "lifeline" for the russian budget, which is experiencing a sharp decline in oil export revenues.
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