Russia: The discount we apply to our oil is declining

Speaking to reporters in the capital Moscow, Kolichyev made assessments of reduced oil revenues from Russia and oil from the Urals due to sanctions.

Expressing that it is not easy to make predictions about oil prices, Kolichyev said: “Currently, oil prices have increased. The discount we apply to our oil is gradually decreasing.” he said.

Emphasizing that oil and natural gas revenues may increase thanks to the decline in the Russian oil discount, Kolichyev said: “In this context, there are prerequisites for the expectation that oil and gas revenues will gradually increase. We see this even now. The price of a barrel of Ural oil in March was $50, now it is $60. That $10 difference is significant value.” he used the phrases.

DISCOUNT REQUEST

Many countries that continue to buy Russian oil, especially China and India, are demanding discounts from Russia, pointing to potential sanctions risks.

EU countries also agreed in December 2022 to apply a maximum price of $60 per barrel to oil transported by sea from Russia.

Meanwhile, Russia’s Finance Ministry announced on April 7 that the country’s oil and natural gas revenues declined by 45 percent to 1.6 trillion rubles (approximately $19 billion) in the first quarter of this year. year, compared to the same period of 2022. (BRITISH AUTOMOBILE CLUB)