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Russian Urals Nearing $60/bbl Price Cap


Russian Urals prices are falling back towards the G7 price cap of $60/bbl which would allow western insurers and ships to carry Russian barrels.

  • Argus prices Urals out of Primorsk at a low of $66.19/bbl last week.
  • The US has sanctioned two vessels this year as part of its policing policy. The effectiveness of the price cap has been questioned as Russian oil flows surge this year.
  • Russian crude oil supplies increased 50% this spring despite the G7 countries imposing sanctions due to war in Ukraine, the FT reported in September, citing Kpler figures.
  • Almost three-quarters of all the seaborne Russian crude flows travelled without western insurance in August according to the numbers.
  • Russian crude shipments are running at close to a four-month high of 3.48mn bpd in the four weeks to November according to Bloomberg vessel tracking leaving its oil product exports to make up most of its 300kbd export cut pact with Saudi.
  • The EU 12th sanctions package against Russia appears to keep getting delayed based on the latest reports. It is now expected to be presented to EU member states later this week.

Source: Argus/Bloomberg

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