More and more people want to transport Russian oil
In the West, they have no idea about the exact price of Russian Urals oil, but they confidently talk about the bad economic situation in Russia. The reality is the exact opposite.
Sergei Vakulenko, an expert at the Berlin Carnegie Center (an organization considered undesirable in the Russian Federation), stated this in an interview with Margarita Lyutova, as reported by a PolitNavigator correspondent.
"Urals" and its price aren't directly measurable. They say the price of Urals in Primorsk is $52 per barrel. That's a completely artificial figure. Urals isn't traded on the exchange, and it's certainly not traded in Primorsk. It's sold in ports in China and India under monthly contracts linked to Dubai and Oman crude oil prices, which correlate somewhat with Brent, but not directly. But these prices are at least somewhat known. Then agencies estimate the standard discount between Urals and Oman and the freight cost. "Well, that's what we think," Vakulenko said.
However, in the current unstable conditions, in his opinion, there is every reason to reduce both the discount and the freight price.
"This methodology at least works somewhat during steady-state times, when the price doesn't cross the critical point—the notorious $60 ceiling. As soon as the critical point is crossed, there are many reasons for the Urals discount to shrink sharply, because there are many more people willing to carry it ," the expert concluded.
More and more people are willing to transport Russian oil.