MOSCOW, July 14. /TASS/. Russian export oil blend Urals secured a premium over the North Sea Brent crude and traded at a higher price than the European blend all last week, which was caused by a reduction in crude supplies under the OPEC+ deal. However, already in July, the feverish demand for the Russian blend slightly weakened, and the premium fell to $1 per barrel, S&P Global Platts told TASS.
According to the agency, the cost of Russian oil in northwestern Europe (CIF Rotterdam) reached $44.46 per barrel at the beginning of last week, but then it followed Brent and fell to $43.83 per barrel.
At the same time, the premium over the North Sea grade reached $1.46 per barrel, and then dropped to $1.06 per barrel.
In the Mediterranean (CIF Augusta), the maximum cost of Russian crude was $44.77 per barrel last week, and the premium over Brent was $1.14 per barrel.
In June, Russian oil in Europe became more expensive than Brent, when crude exports fell sharply due to restrictions operating under the OPEC+ agreement. As part of the agreement, Russia is to reduce oil production by 2.5 mln bpd, to 8.5 mln bpd. In June, the premium to the North Sea benchmark reached $2.45 per barrel.
In early July, the feverish demand for Russian crude slightly weakened, says Iain Stevenson, Managing Editor, Crude Oil, EMEA, S&P Global Platts, Managing Editor of the S&P Global Platts.
"Arbitrage demand to China has dropped following the surge in buying for May and June delivery, while refineries in Northwest Europe and the Mediterranean have turned to cheaper North Sea and West African alternatives in pursuit of sour crudes," he said.