Russia’s Urals oil prices fell below the Western price cap level of $60 per barrel on Tuesday amid weakness in global oil prices, Reuters calculations showed.

Brent crude futures LCOc1 were down 79 cents, or 1.1%, at $71.05 a barrel by 0948 GMT as weak Chinese demand and global oil oversupply risks continued to weigh on the market.

The U.S., other Group of Seven (G7) countries and Australia imposed the cap last year, seeking to reduce Russia’s revenue from seaborne oil exports as part of sanctions prompted by its military actions in Ukraine.

Under the terms of the cap, buyers are only able to use Western services such as shipping and insurance when Russian crude trades below $60 per barrel.

On Tuesday, prices for Urals oil loading from Baltic ports slipped to $59.89 per barrel on FOB (free on board) basis, where the cap applies, according to Reuters calculations.

Urals oil cargoes loading from Black Sea’s Novorossiisk were still priced slightly above the cap level – at $60.33 per barrel, according to Reuters calculations.

Russian Urals oil prices in the state’s ports have been remarkably firm, remaining above the $60 per barrel almost all the time since the start of 2024 despite a brief weakening below the cap level in June, LSEG data shows.
Source: Reuters (Reporting by Reuters, Editing by Gareth Jones)