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Post: Novak says Russia counts on lowering oil discount


Oil pumps in the Almetyevsk region of the Republic of Tatarstan. archive photo

Novak: Russia expects to drop oil discount

ASHGABAT, January 19 – RIA Novosti. Alexander Novak, the former head of the Ministry of Energy, said that the discount on Russian oil has increased recently, but should be lowered given the stabilization of the situation.

“We see that the discount on our oil has increased somewhat at the moment. Naturally, we think that this discount should decrease as buyers have given up on the risk, but as the situation stabilizes.”

According to him, now Russian exporters are working on all the necessary logistics routes and solving insurance and purchasing issues.

According to the Ministry of Finance, the average price of Ural oil from December 15 to January 14 was $ 46.82 per barrel, down from $ 57.5 a month earlier, thus falling by almost 19%.

In early January, Novak said that the high discount in Russian oil relative to other world grades is associated with an increase in freight prices, that is, an increase in payments for the carriage of goods.

On December 5, Western oil sanctions came into effect: the European Union stopped accepting Russian oil transported by sea, and the G7 countries, Australia and the EU set a price cap for sea transport of $ 60 per barrel – oil is more expensive to transport and transport . insurance is prohibited.

In response, Russia has banned the supply of oil to foreign persons from February 1 of this year if the contracts directly or indirectly provide for the use of the marginal price fixing mechanism.

Source: Ria

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