The price of Russian Urals oil has fallen to $34 per barrel, while Brent remains at $61. This drop may indicate the impact of US sanctions and negatively affect the Kremlin's revenues.
The price of Russian Urals oil has fallen to about $34 per barrel. This is reported by UNN with reference to Bloomberg.
Details
According to the media, on Friday, the price of oil in the Baltic Sea fell to $34.82 per barrel, and in the Black Sea – to $33.17 per barrel. The price of Brent oil, which is the benchmark for international prices, was about $61, falling much less than Russian supplies this year.
This may indicate that the impact of US sanctions against Russia exists. In addition, a prolonged fall in prices could negatively affect the Kremlin's oil revenues, which are used to finance the war in Ukraine, given that oil and gas account for about a quarter of the budget.
The cheaper oil becomes, the greater the financial incentive refiners have to ignore sanctions to buy it
– the publication says.
Recall
By the end of 2025, an increase in Russian natural gas exports to China via pipeline by a quarter is expected. However, this will not compensate for the drop in revenues from the loss of the European gas market.
