Russia's flagship oil price drops as buyers retreat ahead of US sanctions
Urals crude fell to $36.6 per barrel last week at the Russian port of Novorossiysk, its lowest level since early 2023, Bloomberg reported on Nov. 17, citing price assessments company Argus Media's data.
The decline highlights the impact of the U.S. sanctions on Russian energy giants Rosneft and Lukoil, which warned foreign institutions that they must end all transactions with the companies by Nov. 21.
Discounts on Urals relative to Brent reached $23.5 per barrel, the widest gap since June 2023. Before the sanctions, Urals typically traded $12–13 below Brent in Russian ports.
The current discount has nearly doubled and is approaching the record set in early 2023, when Urals briefly fell $40 below Brent.
The price drop in Russia's flagship oil reflects a widening loss of buyers in India and China.
India's five largest refineries, which together bought about 1 million barrels per day from Russia, refused shipments scheduled to arrive after Nov. 21.
China's state-owned Sinopec and PetroChina, along with independent refiners, also halted direct purchases from Rosneft and Lukoil.
Bloomberg earlier reported that Russia's seaborne exports fell sharply in early November, marking the largest weekly decline since January 2024.
With key buyers stepping back, Russia has increasingly left cargoes on tankers that now serve as floating storage.
The shift reflects mounting pressure on Moscow's energy sector, which relies on discounted supplies to India, China, and Turkey to offset lost European demand and sustain export revenues.
