Prices for Russia's main export oil blend, Urals, supplied to India, have reached a record high after the US allowed countries to temporarily buy Russian oil. This is reported by Bloomberg, writes UNN.
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According to Argus Media, on Friday, the price of Urals oil on India's west coast reached $98.93 per barrel. This price, including delivery, is the highest since Russia redirected oil exports to India after the invasion of Ukraine.
The price jump occurred amid rising global oil prices due to the war in the Middle East. According to the data, on Friday, the discount on Russian oil supplied to Indian ports narrowed to $4.80 per barrel compared to the price of the global benchmark Dated Brent, which is the lowest in the last four months.
Last week, the US Treasury Department issued a license allowing buyers to purchase Russian oil already at sea. This move expanded a temporary sanctions exemption - previously granted exclusively to India - to any country, as US President Donald Trump's administration seeks to ease pressure on prices amid the war in the Middle East.
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After receiving a green light from the US in early March, Indian refiners - including Indian Oil Corp. and Reliance Industries Ltd - purchased about 30 million barrels of Russian oil transported by sea, sources familiar with the deals said last week.
According to Argus Media, on Friday, the average price of Urals oil in Russia's western ports was $73.73 per barrel, the highest since mid-July 2024. However, it is unclear whether the so-called "delivery spread" - the difference between the export price and the price at the point of delivery - ultimately benefits Russia.
The price is still significantly higher than the average price of $59 per barrel envisioned in Russia's budget for this year. Last week, Kremlin head Vladimir Putin urged Russian oil and gas producers to take advantage of the sharp rise in commodity prices, but warned that this surge is "definitely temporary" and that officials and companies should plan their activities accordingly.
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