Russian Oil Fell in Price Amid a Dispute with Belarus
On February 28, the Urals price fell to $ 46.6 per barrel - Russian oil was cheaper only in July 2017. Urals has fallen in price to the Brent standard, follows from Argus data. On February 18, the Urals discount to Brent for delivery to Northwest Europe was $ 0.2 per barrel. February 28th discount is already $ 2.9.
According to media reports, last week Surgutneftegas, as well as international traders Trafigura and Glencore sold six batches of Urals oil with shipment in March at a discount to Brent of $ 2.5 per barrel. Litasco trader (LUKOIL subsidiary) sold 80 thousand tons of the same grade of oil with delivery in March at a discount of $ 2.45, follows from Argus data.
One of the reasons for the decline in Russian oil prices is the restriction of supplies to Belarus, says Thomson Reuters analyst Gleb Gorodiankin. Russia traditionally supplied Belarus with about 1.5 million tons of oil per month, and this year it planned to increase deliveries to 2 million tons per month. But since the end of last year, Moscow and Minsk have not been able to agree on prices.