Prices for September Urals crude oil firmed to $67-$68 per barrel on a free-on-board basis in Russian Baltic and Black Sea ports, $7-8 per barrel above the $60-per-barrel western price cap, Reuters calculations based on traders’ data showed on Tuesday.

The U.S., other Group of Seven countries and Australia imposed the cap last year, seeking to reduce Russia’s revenue from seaborne oil exports as part of sanctions.

Under the cap’s terms, suppliers of Russian oil are only able to use western services such as shipping and insurance when Russian crude trades below $60 per barrel.

Reuters Urals oil price calculations are based on the grade’s market price in Indian ports on a delivered-ex-ship basis, transport costs and the Brent benchmark.

Discounts for Urals oil loading in September were at $3.30 per barrel to Brent on average, slightly up from recent price levels for the grade, two traders said.

Freight rates remained stable at $4.8 million for a tanker one-way voyage from Russian Baltic ports to India, traders said.

Calculated Urals oil prices have mostly remained above the price-cap limit since early this year, Reuters data shows. Meanwhile, the price for each specific Urals cargo is agreed between a seller and a buyer and various price formulas can be used, traders said, which make it impossible to calculate the price for a certain cargo.
Urals discounts in Indian ports, which have become the main market for Russian Urals oil seaborne cargoes since 2023, remained stable in recent months, moving between $3 and $4 per barrel.

Traders said the price of Urals oil has found a balanced level, as sellers are not ready to widen the discount, while buyers do not wish to pay more.
The firm Brent price is also a reason Urals oil values have remained above the $60-per-barrel limit, as the Russian grade price is linked to Brent.

Brent crude futures LCOc1 were down 47 cents, or 0.58% at $80.96 a barrel by 1311 GMT.
Source: Reuters (Reporting by Reuters and Nidhi Verma in New Delhi; Editing by Rod Nickel)