The price of Russian oil has dropped to its lowest level in two and a half years

The price of Urals oil for deliveries from the Black Sea port of Novorossiysk fell to $36.61 per barrel on Thursday - this is the minimum since March 2023, Bloomberg reports , citing data from Argus Media. Similar dynamics were observed in the ports of the Baltic Sea. By Friday, prices recovered a little from the fall.

Demand for Russian supplies began to fall after the Donald Trump administration imposed sanctions on Rosneft and Lukoil. They come into force on November 21, but foreign refiners - in China, India and Turkey - are already suspending purchases and looking for alternatives.

Therefore, Urals is trading at significant discounts. At the end of last week, the discount to Brent for Russian supplies from the Black and Baltic Seas widened to $23.52 per barrel, reaching its highest since June 2023, according to Argus. This indicates the reluctance of buyers to take risks and deal with Russian oil amid the threat of secondary sanctions, writes Bloomberg.

Even after delivery to China and India, Urals remains several dollars cheaper than Brent (shipping costs are not included in the calculation).