Russian Urals oil prices hold below price cap on weaker Brent, Reuters calculations show
Oil prices edged up on Friday, as investors weighed a tight prompt market against a potential large surplus this year, according to the International Energy Agency, while U.S. tariffs and possible further sanctions on Russia were also in focus.
Urals oil cargo loadings from Russia's Baltic and Black Sea ports were priced around $58 per barrel on Thursday on a free-on-board basis, which excludes charter costs and insurance, according to Reuters calculations.
Reuters calculates Urals oil prices based on the previous business day's data.
Oil prices fell on Thursday as investors weighed the potential impact of U.S. President Donald Trump's tariffs on global economic growth, but prices steadied on Friday.
The United States, other Group of Seven countries and Australia imposed the price cap in late 2022, seeking to reduce Russia's revenue from seaborne oil exports as part of wide-ranging sanctions imposed over Moscow's invasion of Ukraine.
Under the terms of the cap, suppliers of Russian oil are only able to use Western services such as shipping and insurance when Russian crude trades below $60 per barrel.
The European Commission is expected to propose a floating Russian oil price cap as part of a new draft sanctions package, in an attempt to overcome opposition from some member states, four EU diplomats told Reuters this week.
The plan to lower the price cap was prompted by a fall in global oil prices, which made the current cap largely irrelevant.
The Commission proposed lowering the Group of Seven (G7) nations' price cap from $60 a barrel to $45 a barrel in June in its 18th package of sanctions.
Russian Urals oil has been priced below $60 per barrel since April 2, except for a short jump above the price cap level in June on a rally in Brent.
The Urals oil price is linked to the Brent price, making it dependent on changes in the benchmark's value.
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BBC News
43 minutes ago
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Rosenberg: US tariff threat leaves Russia less rattled than relieved
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