Oil is cut in production and discount

Sergey Kondratiev, Principal Director on Economic Studies of the Institute for Energy and Finance, commented on the prices for Russian Urals oil to Kommersant FM.

In June 2023, the maximum discount should be $28, and in July - $25. However, Urals is likely to rise in price relative to Brent at an accelerated pace, Sergey Kondratiev believes:

“Now discounts are at the level of $25-$27 per barrel. The market has already reacted quite well to the reduction in Urals offers, and this is really beginning to be felt.

In addition, after all, the extension of logistics schemes, the improvement of the situation associated with the provision of insurance, lead to the fact that the discount begins to naturally decrease.

I think that in the coming months we will go ahead of those levels that are enshrined in the law, and in fact by the end of the year we will see a discount of $15-$18 per barrel.”