• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 1 day GREEN NEW DEAL = BLIZZARD OF LIES
  • 5 days They pay YOU to TAKE Natural Gas
  • 1 day How Far Have We Really Gotten With Alternative Energy
  • 2 days What fool thought this was a good idea...
  • 4 days Why does this keep coming up? (The Renewable Energy Land Rush Could Threaten Food Security)
  • 7 hours A question...
  • 11 days The United States produced more crude oil than any nation, at any time.

Russian Urals Breaks Past $60 Price Cap Thanks To OPEC+

Following the weekend’s surprise OPEC+ 1.6 million bpd output cut, the price of Urals, Russia’s flagship crude oil, has reached beyond the $60 per barrel price cap level set by the G7 in December, Reuters reports, citing sources involved in Russian oil trading.

Based on the G7 price cap, Urals can only be traded in US dollars if sold below $60 per barrel. Oil traders told Reuters that because there is a period of time during which cargoes are priced, it is still possible to close below $60, depending on deal timing. 

Also on Wednesday, the Kremlin noted a 43% year-on-year drop in federal budget revenues from oil and gas in March, Reuters reports, citing the Russian Finance Ministry.

There was no drop in oil and gas revenues for the federal budget month-on-month (from February to March) due to the collection of quarterly mineral extraction profit taxes on the industry, which made up for losses. 

Russia recorded federal budget revenues from oil and gas sales at nearly $8.7 billion in March, up slightly from February, but down significantly from March last year, when oil and gas sales revenue for the federal budget topped $1.2 trillion.

The Kremlin relies on oil and gas revenues to finance its “special operation” in Ukraine.

In mid-March, the International Energy Agency (IEA) cited the Russian Finance Ministry as saying that oil sales were 45% lower than the same time last year, noting that Western sanctions were having the “intended effect”.

The Kremlin is eyeing a 2% GDP budget deficit for this year, with the Finance Ministry predicting a 23% drop in oil and gas revenues for the full year. The Ministry’s price for February crude was $49.56, with March set at $47.85. This is down from March 2022, when Urals crude prices were set at $88.95, according to Reuters.  

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News