Russia’s Urals crude oil price has exceeded the $60 per barrel limit set by Western sanctions, driven by a surge in Brent crude prices amid escalating Middle East conflicts.
Oil prices surged last Friday, closing 7% higher as escalating air strikes between Israel and Iran heightened investor concerns over potential widespread disruptions to oil exports from the region.
In late 2022, the United States, the Group of Seven (G7) countries, and Australia implemented a price cap on Russian seaborne crude oil exports to curtail Moscow’s revenue. Under this mechanism, Russian oil suppliers can only access Western services such as shipping and insurance if the crude price remains below $60 per barrel.
The European Union has recently proposed tightening these restrictions by lowering the price cap further to $45 per barrel, intensifying challenges for Russian oil trade.
According to calculations, Urals crude shipments from Russia’s Baltic and Black Sea ports were priced around $62 to $63 per barrel on a free-on-board basis last Friday, excluding charter and insurance costs. This marks the first time since April 2 that Urals crude has breached the $60 threshold.
Since Urals crude pricing is closely linked to the Brent benchmark, fluctuations in Brent prices continue to significantly influence the valuation of Russian oil.
