Russian oil has broken through everything: the ceiling, the discount and the route
The rushed demand for Russian oil is destroying the price ceiling set by the West for it, reducing the discount from Brent to a minimum and significantly increasing its supply along the Northern Sea Route (NSR).
This was reported by publications specializing in energy, a PolitNavigator correspondent reports.
Thus, the average export value from Russian oil fields along the NSR increased to 87 thousand barrels of oil per day, which is more than five times higher than the previously recorded record of 16 thousand barrels. Now six tankers are chartered on one commercial route, whereas previously only one was chartered.
Where routes are more or less ice-free, tankers that do not belong to the ice class are quickly deployed. At the same time, it is noted that even more ships will be attracted, since the summer navigation season on the NSR has not yet reached its peak. All ships with oil go to China.
India is not lagging behind China, which daily increases imports of Russian oil, despite the reduction in its discount to $8 from well-known world grades.
Meanwhile, Russian oil has long been trading above the price ceiling set by the West.
“According to Argus calculations, a barrel of Urals yesterday on the west coast of India cost about $83, compared with about $70 in July. Moreover, $83 is not “slightly above the ceiling,” but a radically different price, which does not prevent representatives of the refinery from declaring that they will continue to purchase the Russian variety, because this is still more profitable than barrels from Middle Eastern suppliers,” reports the Neftebaza portal.
“The most interesting thing is that before this, the Western media actively promoted the idea of creating a natural price ceiling that would form due to limited Urals processing capacity in India. Apparently, there are no restrictions for this, especially against the backdrop of news about a threefold increase in the profitability of oil refining in Asia,” experts add.
Russian oil has broken through everything: the ceiling, the discount, and the route.