Russian crude prices rose to the highest in more than 13 years as Moscow benefited from the Iran-linked global oil rally.
The country’s flagship Urals crude reached $116.05 a barrel on April 2 in Russia’s port of Primorsk, the biggest oil-export facility on the nation’s Baltic coast, according to data from Argus Media.
The price, which doesn’t include shipping costs, is almost twice as high as the average $59 a barrel assumed in Russia’s budget for this year. Windfall oil revenues are easing pressure on the Kremlin’s finances as it continues its war in Ukraine.
The Middle East conflict has effectively choked off about a fifth of world’s oil supplies going through the Strait of Hormuz. US President Donald Trump has demanded that Tehran open the critical waterway or face the destruction of key infrastructure, setting a deadline of 8 p.m. Eastern Time on Tuesday.
In Russia’s Black Sea port of Novorossiysk, Urals reached $114.45 a barrel on Thursday, according to Argus Media. The average discount of Urals from Russia’s western ports to the global benchmark Dated Brent narrowed to below $27.75 a barrel, the lowest since mid-December.
By the time Urals reaches India, it trades at a premium to Brent, which widened to $6.1 a barrel compared with $3.9 two weeks ago, the data show. It’s unclear whether the delivery spread — the gap between export and delivered prices — ultimately accrues to Russia.
To be sure, Moscow’s ability to benefit from a global crude rally is undermined by Ukrainian attacks on oil-export infrastructure and refineries. Kyiv has stepped up strikes on sea ports — in particular on the Baltic coast, from where about 40% of Russia’s seaborne crude is shipped — leading to loading disruptions and curbing Moscow’s revenues from commodity exports.
