Alexey Gromov gave a commentary to the Sputnik radio station about the possible reasons for the reduction in the price discount for Russian oil.
Aleksey Gromov, Principal Director on Energy Studies of the Institute for Energy and Finance, expressed the opinion that the discount has halved due to increased demand for Russian oil from the Europeans.
The discount of $15 per barrel is likely to remain until the end of autumn, the expert believes.
"There is good reason to believe that such a ($15 per barrel - ed.) discount level is due to the fact that on the eve of the entry into force of the EU embargo on the purchase of Russian oil and petroleum products, there is an increased demand for our product in Europe. In such a situation Russian companies have the opportunity to reduce the sanctions discount, because buyers are ready to take oil more expensive, stocking up before the embargo,” Alexey Gromov explained.
“The discount of $15 per barrel that we are seeing now will be sustainable. It will last for two or three months. Since the introduction of the European embargo on Russian oil, the discount will most likely return to the values of $25-35 per barrel of Urals oil ", - Alexey Gromov concluded in an interview with Sputnik radio.
Subscribe for updates
and be the first to know about new publications