Prices for Russian flagship Urals oil grade cargoes loading in November have climbed back above $60 per barrel at Russian Baltic and Black Sea ports on firmer Brent, traders said and Reuters calculations showed.

Softer shipping costs at key export routes to Asia and stable prices in Indian ports provided support to Urals FOB estimates, according to market sources.

Urals oil cargoes loading from Baltic Primorsk port were seen at $63 per barrel, while the grade’s cargoes loading from Novorossiisk stood at $64.2 per barrel after remaining below the price cap level since mid-October, according to Reuters calculations.

Brent crude futures LCOc1 rose 45 cents, or 0.6%, to settle at $75.53 a barrels on Wednesday.

Oil prices were rising since Monday following OPEC+ decision to delay plans to hike production in December.

Discounts in Indian ports, main market for seaborne Urals oil, remained steady – at $3.50-3.80 per barrel to dated Brent, traders said.

The freight rates for Russian oil shipments declined to $5.1-5.2 million for a tanker’s one-way voyage from Russian Baltic ports to India, steady to lower from October levels.

Lower freight rates were seen as a result of lower oil exports planned from Russian ports this month.

In late 2022 the Group of Seven countries – the United States, Canada, Britain, Italy, France, Germany and Japan – together with the European Union and Australia imposed a cap of $60-per-barrel on the sale of Russian oil on a free-on-board basis, seeking to reduce Russia’s revenue from seaborne oil exports as part of sanctions.

Higher Urals prices will boost Russia’s oil revenues.

India did not join Western sanctions on Russia, but adheres to international sanctions policies including the price cap.

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

The price for each specific Urals cargo is agreed between a seller and a buyer, while different price formulas may be used.

Reuters estimations of Urals crude prices FOB prices are based on the grade’s discounts to Brent at Indian ports on a delivered-ex-ship basis, transport, other associated costs and the Brent benchmark.
Source: Reuters (Reporting by Reuters; Editing by Bernadette Baum)