OREANDA-NEWS  Against the background of the expected entry into force of European sanctions, the price of Russian oil is falling sharply. On Thursday, November 22, the cost of the Urals grade with shipment from Novorossiysk and Primorsk collapsed to $ 52 per barrel, which was the lowest since the end of 2020. Bloomberg writes about this with reference to data from the Argus pricing agency.

This level is significantly lower than the price ceiling that most European countries propose to introduce. According to the latest data, the discussion is about the cutoff of $ 65-70 per barrel, although Poland insists on $ 30.

However, despite the differences, the very fact of the sanctions, which will take effect on December 5, obviously unnerves traders. The cost of Urals lags behind the quotations for the benchmark Brent grade by more than $ 30, while it is almost $ 20 lower than the level of $ 70.1 per barrel laid down in the Russian budget.

Since the beginning of autumn, Brent has lost 15 percent in price (about $ 85 per barrel on November 25), Urals — 28 percent. If the dynamics do not change, the Russian budget, which in 2023 was adopted with a deficit of three trillion rubles, will face a new test.