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Urals Prices Trending Back Towards Price Cap

OIL

Urals crude oil prices at Russian ports have softened and are trending towards levels set by the G7 price cap, according to Nasdaq citing Reuters’ trading sources.

  • Estimates prices for FOB Urals loading prices from Baltic Ports for cargoes headed to India put are around $63-64/b Nov. 10, nearing the $60/b price cap.
  • Urals cargoes have consistently traded above the price cap since July, averaging $81.52/b in October and $83.30/b in September according to Russia’s Finance Ministry.
  • Falling brent crude prices and rising freight rates from Russian ports have provided downside for FOB Russian crude oil prices.
  • Freight costs for Russian barrels have jumped since the US imposed sanctions on two tankers. This has pushed some risk-averse shipowners to out of the market for carrying Russian barrels.

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