Russian oil for the first time has become much more expensive in Europe

the Price of the Russian export standard Urals oil in Europe reached a record premium of 2.35 dollar to North sea benchmark for the entire history of observations since September 1994, reported price Agency Argus.

Price for Urals at the end of trading on Thursday 25 June grew by 92 per cent to 43.25 dollars per barrel. In the end, the Urals increased price isolation from Brent became more expensive by 40 cents than European Brent – now the price of Russian oil on 2,35 dollars higher in Europe (delivery in Rotterdam).

as a result of the updated new record set at the end of may, when Russian oil was 2.3 per dollar higher in Europe.

Today, the gap persists. Data on trades in London on the ICE exchange by 14:20 GMT, a barrel of Brent give 41.49 per dollar (+1.1 percent), the us benchmark WTI is trading at $ 39 (+0.7%).

the Russian oil becomes more expensive due to strong demand growth after a decline in shipments in July are expected to cut shipments of Urals more than 40 percent in the framework of the reduction of oil production in Russia according to the agreement, OPEC+.

for Many years Urals traded below the price of Brent for a few dollars, but more expensive than the us benchmark WTI. The situation changed after the March 6 2020 — a new agreement by OPEC regarding production cuts by all major oil-producing countries. During the transaction on March 6, the price of oil on world markets has increased in 2 times.

March 6, 2020, it became known about the termination of previous agreements OPEC+ 1 APR. In the end, oil prices fell more than 2 times. But OPEC countries and other States, headed by Russia, April 10-12, 2020 agreed to gradually remove from the market the surplus of oil starting may 1. In the end, the framework of OPEC+ 23 countries agreed to cut production together at 9.7 million barrels per day in may-June. 9 more countries outside OPEC+ announced plans to reduce production to maintain a transaction — by 3.6 million barrels per day.

In June, the agreement was extended in July 2020. Then the reduction of oil under the agreement will be reduced to 7.7 million before the end of the year and then 5.8 million by the end of April 2022.