Economy 2024-02-15T04:59:11+02:00
Ukrainian news
Russian Oil Price Collapses: Urals Grade Drops To Its Lowest Since 2020

Russian Oil Price Collapses: Urals Grade Drops To Its Lowest Since 2020

Russian oil, import of Russian oil, refuse from Russian oil and gas, Russian oil price

The approach of a new wave of Western sanctions brought down Russian oil prices and brought the Russian oil industry to the brink of profitability. The cost of Russian Urals when shipped from the ports of Novorossiysk and Primorsk on Thursday, November 24, fell to USD 52 - the lowest since the end of 2020. It is reported by Bloomberg.

Although the EU countries have not yet managed to agree on the "price ceiling" for oil from Russia, its cost is already more than USD 30 behind the Brent grade and is almost USD 20 below the level included in the 2023 budget of the Russian Federation (USD 70.1). Urals has fallen 28% since the start of the autumn, while Brent has fallen just 15%.

"And this promises a new pain not only for the Russian treasury, the deficit of which next year is laid at the level of RUB 3 trillion, but also for the entire oil industry," Finanz journalists note.

"Taking into account all taxes, so that the industry does not work in losses, oil should cost about USD 50," estimates Dmytro Poliovyi, chief investment officer of IC Loko-Invest.

"The cost of direct production, that is, oil extraction to the surface is much lower than USD 11-12 per barrel. The rest is fees to the budget and expenses of companies," said Poliovyi.

As Ukrainian News Agency earlier reported, Russia said that it would not sell oil to countries that would support the "price ceiling." In this regard, the Russian government is preparing to reduce production.