The price of Russian Urals oil has significantly decreased and is currently trading at around $34 per barrel. This is one of the most striking signals of the effectiveness of US sanctions against the Russian Federation.
This is reported by Finway
Decline in Urals Prices in Different Regions
In the Baltic Sea, the price of Urals on Friday was $34.82 per barrel. Meanwhile, in the Black Sea market, the price of this oil was even lower at $33.17 per barrel. These figures were released by the analytical company Argus Media.
Comparison with Other Global Grades
In comparison, Dated Brent, which is the main global benchmark, was trading around $61 per barrel. Since the beginning of the year, the decline in Urals prices has been significantly deeper than that of Brent, vividly illustrating the substantial pressure sanctions are placing on Russian oil exports.
Low prices for Russian oil are significantly reducing the influx of “petrodollars” into the Russian budget, on which approximately a quarter of total government expenditures depend.
The agency reports that low prices are limiting the Kremlin’s access to “petrodollars,” which finance about a quarter of government spending.