Urals Oil Prices Fall
Russian Urals crude fell to around $107 a barrel, down from above $120 on September 16, as weaker shipments, new US sanctions and the gradual restoration of Saudi Arabian oil flows increase competition in key markets. Russia’s overseas crude exports averaged 3.53 million barrels a day in the four weeks through September 20, while weekly shipments fell more sharply following a halt in cargoes from the Black Sea port of Novorossiysk. Saudi Arabia’s efforts to restart its East-West pipeline have also pressured Russian grades by increasing alternative supplies. Meanwhile, President Donald Trump signed legislation allowing tariffs of up to 100% on imports from Russia’s five largest energy customers, raising concerns among Indian refiners. India could reduce Russian crude imports to 20%-30% of total purchases, potentially cutting demand by more than 1 million barrels a day. At the same time, attacks on Russian refineries have disrupted nearly 1 million barrels a day of processing capacity.
Russian Urals crude fell to around $107 a barrel, down from above $120 on September 16, as weaker shipments, new US sanctions and the gradual restoration of Saudi Arabian oil flows increase competition in key markets. 53 million barrels a day in the four weeks through September 20, while weekly shipments fell more sharply following a halt in cargoes from the Black Sea port of Novorossiysk. Saudi Arabia’s efforts to restart its East-West pipeline have also pressured Russian grades by increasing alternative supplies.
Meanwhile, President Donald Trump signed legislation allowing tariffs of up to 100% on imports from Russia’s five largest energy customers, raising concerns among Indian refiners. India could reduce Russian crude imports to 20%-30% of total purchases, potentially cutting demand by more than 1 million barrels a day. At the same time, attacks on Russian refineries have disrupted nearly 1 million barrels a day of processing capacity.