Russia’s flagship Urals crude slumped back below a price cap that Group of Seven countries imposed in an attempt to cut Moscow’s access to petrodollars to fund its war in Ukraine.
(Bloomberg) — Russia’s flagship Urals crude slumped back below a price cap that Group of Seven countries imposed in an attempt to cut Moscow’s access to petrodollars to fund its war in Ukraine.
The grade fell to $58.59 a barrel at the Baltic Sea port of Primorsk, and $59.09 at Novorossiysk in the Black Sea, according to data provided by Argus Media. The price reporting agency’s figures form part of price-cap setting deliberations.
Urals climbed above the $60-a-barrel threshold for the first time last week. That was important because the cap prohibits Western firms from providing key services including shipping and insurance for those who pay above it.
Headline oil prices surged above $80 late last week as disruptions in Libya and Nigeria added further tightness to a market where Saudi Arabia, Russia and other nations in OPEC+ have curbed supply.
The price cap has been in place since Dec. 5, and Urals hadn’t exceeded it until last week.
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