Russia is about to lose exports in the Urals crude for the first time in 20 years

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Russia is about to lose exports in the Urals crude for the first time in 20 years

Tuesday, 31 March 2020 18:41

Agencies

Accounts show that Russian export earnings from Ural ore shipments through the Primorsk port on the Baltic Sea and the Novorossiysk Port on the Black Sea have become negative this week, with Brent prices touching their lowest levels in 18 years.

This is the first time in 20 years that the return on Russian oil exports becomes negative, according to the data, and the price of the Russian Urals is determined by a discount from the price of Brent dated.

Over the past two years, the average price discount was $ 1.27 for shipments exported from the Baltic ports, according to the accounts.

And this week, Primorsk Port’s load deduction was $ 4.35 a barrel from European benchmarks, according to Reuters.

The net return, or the profits of offering one unit of oil on the market, is calculated from Brent’s historian, with the deduction of Russian export duties for the month of export and transportation costs.

According to the calculations made, the net return of the Urals-sourced from Primorsk negative is 485 rubles ($ 6.20).

Per ton and minus 487 rubles ($ 6.21) per ton when shipping from the Novorossiysk Port on the Black Sea.
These calculations are based on an export fee for March of $ 66.9 per ton and Brent price, dated March 30.

Global oil prices rose after US President Donald Trump and his Russian counterpart Vladimir Putin agreed to hold talks aimed at bringing stability to energy markets.

This comes after prices fell to their lowest levels in 18 years, as global demand for fuel shrank due to the spread of the Coruna virus and supply inflation due to a battle over the market share between Russia and Saudi Arabia.



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