All news

Argus starts assessing Urals prices in Russian ports from October

The redirection of Urals from European countries to other regions resulted in a decline in trading activity in European ports and a decrease in the importance of these destinations for estimation of the oil blend value

MOSCOW, November 10. /TASS/. The re-routing of Russian oil supplies from European Union member-states to other regions makes it impossible to assess Urals oil blend prices in Northwestern European ports and in the Mediterranean, the international price agency Argus said in its report made available to TASS.

Urals prices in European ports do not fully recognize the fair value of the Russian oil blend because its maritime shipments have declined, Argus noted. The redirection of Urals from European countries to other regions resulted in a decline in trading activity in European ports and a decrease in the importance of these destinations for estimation of the oil blend value.

"Argus began a trial valuation of Urals prices in late July under FOB Primorsk, Ust-Luga and Novorossiysk, while quoted prices on such bases were launched formally in early October after consultations with market players," the report reads.

The contraction of Urals supplies to the EU and lower trading activity in European ports are accompanied by higher liquidity of trading in spot batches of crude in Russian ports of shipment, Argus said. The estimation of Urals prices in ports of shipment has become relevant because these prices recognize the value of seaborne batches shipped from Russia to any destination, the agency added.