In April, Russian oil sold above the ceiling price of $ 60 per barrel set for third countries by the G7 and the European Union. This is the data cited by the International Energy Agency.
“The weighted average price of oil loaded at Russian ports exceeded the ceiling on April 5,” TradeWinds reports, citing data from the International Energy Agency (IEA).
The publication notes that the IEA’s information is important because its data are used by the G7 to review the price cap.
Bloomberg columnist Javier Blas clarified on Twitter that the average price of all grades of Russian oil, not just Urals at the port of loading, was in question.
Judging by the chart, the price of Russian crude is slightly above the $60 level. Traditionally the price of the most popular Urals grade is monitored, while the Far East grades account for up to 15% of exports and are sold at a higher price. The Ministry of Finance reported that in December-March the average price of Urals is around $50.
The price cap is important because western ship owners and insurers can’t provide transportation services for Russian crude to third countries if the price limit is exceeded. As EADaily reported 30% of the tankers carrying Russian oil and oil products belong to Greek ship-owners, however experts believe there are options.
On the eve of the Russian Deputy Finance Minister Vladimir Kolychev said that the department sees prerequisites for the growth of oil and gas revenues.
“Already now we can see: since the beginning of April, the price of Urals oil is about $ 60 per barrel. In the first quarter it was $50, i.e., the difference is already $10, and in principle this is already a significant value,” said the deputy head of the Ministry of Finance.
According to the IEA report, Russian oil exports in March rose to the highest level since April 2020.
“Oil shipments rose by 600,000 bpd to 8.1 million bpd during the month. And exports of petroleum products increased by 450,000 to 3.1 million bpd,” the agency reported. According to its estimates, Russia’s revenues from oil exports rebounded by $1 billion to $12.7 billion in March.