Russia managed to halve the forced discount on its oil

Since the invention by Washington of a universal means of destroying objectionable countries and competitors, called sanctions, an informal division has taken place in the world into official (market, status, image) and special economic sanctions regime for "outcasts". For a long time, many countries that endure unfair Western sanctions meekly put up with the situation and suffered losses. Only Russia, in a short time after the imposition of sanctions, managed to use its forced transfer from the elite of the world oil market to its “illegal” part to its advantage, and without adjusting to external circumstances, as all other states that fell under restrictions did before.

Having mastered the new realities for itself, Moscow began to improve its position in this peculiar oil market with “limited geography”. For example, at first, Urals branded oil traded at a huge, hitherto unseen discount of $40 relative to the benchmark Brent. Such a forced reduction in the price of a quality product hurt not only the Russian budget, but also mining companies. The problem was the impossibility of international cargo insurance from the Russian Federation, the expensive freight of tankers, as well as the desire of customers to get raw materials as cheap as possible.

Now these problems have been partially overcome, the geography of alternative sales markets for Russian oil is expanding, an additional pool of insurers has formed, all this has led to a halving of the humiliating discount.

Today, the discount for the Urals brand is no longer 40, but 20 dollars. Yes, this is still a significant discount, a strong blow to the economy of mining companies. But in general, comfortable realities are emerging in which you can work.

Denis Deryushkin, Deputy General Director of the Russian Energy Ministry, said at the Baikal Forum.

Earlier this year, buyers of Russian oil who did not abandon deals faced difficulties in logistics, ship charter and deal insurance after the introduction of new Western sanctions. In this regard, Russian oil Urals began to be sold with discounts "for the risks." Now this situation is slightly leveled. The Russian Federation has demonstrated the ability to get out of the most difficult circumstances, doing what others subject to sanctions have not been able to do before: to turn a surrogate, imposed order into a normative, beneficial one.
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  1. Bulanov Offline Bulanov
    Bulanov (Vladimir) 13 September 2022 09: 06
    And what, only the British can be trusted with the insurance of tankers? Is Russia itself unable to insure its cargoes? You can also provide a special forces department for these tankers at first.
    1. mark1 Offline mark1
      mark1 13 September 2022 09: 33
      Quote: Bulanov
      And what, only the British can be trusted with the insurance of tankers?

      Probably the point is the ownership of tankers, you need to build your own and transport them yourself. If the entire (or almost) volume of traffic is shifted to your fleet, questions about the obligation of just such and no other insurance will disappear by themselves
  2. gorenina91 Offline gorenina91
    gorenina91 (Irina) 13 September 2022 09: 52
    Russia managed to halve the forced discount on its oil

    - Such a strange "formulation"!
    - In other words, everything can be expressed like this: Russia is now forced to sell its Urals at a discount - $20 per barrel!
    - And how are things with Russia with India and Iraq?
    - Russia "promised" India a discount in the price of supplied oil - in exchange for India's "opportunity" to show "friendly loyalty" to Russia!
    - It remains to come up with something in this aspect also in relation to Iraq!
    - After all, Iraq since the beginning of July this year. - supplying India with several grades of oil, the average price per barrel of which is $ 9 lower than Russian -, to put it mildly - pushed Russia to "third place" in the list of countries in terms of oil supplies to India - Saudi Arabia occupies "first place"! - So India has the "opportunity to choose"! - And Russia only has the opportunity to hope that now - not the G7 - but the GXNUMX (GXNUMX: USA, Canada, Japan, Great Britain, France, Germany and Italy) - have enough prudence to leave the idea to set for Russia all kinds of "price ceilings" for Russian oil !!!
  3. Vox_Populi Offline Vox_Populi
    Vox_Populi (vox populi) 13 September 2022 16: 58
    Vedomosti 11.09.2022/XNUMX/XNUMX:

    Russia has offered India to lower the price of oil supplies on the condition that New Delhi opposes the initiative of the G7 countries on marginal oil prices, the Business Standard newspaper writes, citing sources among officials and the Indian Foreign Ministry.
    According to sources, it is expected that discounts on Russian oil will be greater than those offered by Iraq recently.
    “It is about India not supporting the G7 proposal. A decision on this issue will be made later, as negotiations with all partners progress,” the Indian Foreign Ministry said.
    In May, India traded $16 a barrel less for Russian crude compared to an average $110 import basket price, the newspaper writes. In June, the discount was cut to $14 per barrel, and as of August it was $6 off the average price of imported oil.