Russia’s oil exporting netback, or the price excluding transportation and other costs, for delivery to the Baltic Sea port of Primorsk from Western Siberia this week hit the lowest since June 2023 following a fall on global oil markets.

The decline may add to the worries of the Russian government, which is tackling high inflation and slower economic growth exacerbated by already weak prices of oil, a key source of revenue for the state budget.

According to Reuters calculations, the netback for West Siberian oil declined on April 8 to 32,759 roubles ($392) per metric ton.

The netback is the benchmark for the traders for domestic oil pricing (0#CRUDE-RU).

Netback is calculated on the basis of Brent oil excluding the discount for Russia’s Urals oil. Reuters estimates the discount at $11.88 per barrel.

Earlier this month, the price for Russia’s Urals blend for cargoes loading from Primorsk, Ust-Luga and Novorossiisk ports fell to around $53 per barrel, below the $69.7 per barrel average Urals price on which Russia has based its 2025 budget.
Source: Reuters