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World oil prices

Bank of Russia expects oil discount to go down

The embargo on Russian oil supplies to the EU may result in an increase in supplies of petroleum products from other countries

MOSCOW, January 31. /TASS/. The price discount for the Russian Urals oil blend may decline, the Central Bank said on Tuesday.

The need to redirect oil to Asia by Russian suppliers after the EU embargo had come into force prompted competition growth for the Asian destination with traditional supplies from the Middle East. This led to higher discounts for the Russian oil against other blends, the Central Bank noted.

"The price discount for the Russian oil may go down in coming months at the same time as logistical routes are restructured and a portion of suppliers shifts to the European market," the regulator noted.

The embargo on Russian oil supplies to the EU may result in an increase in supplies of petroleum products from other countries. "This will increase the demand for Russian oil worldwide in conditions of difficulties with the redirection of deliveries of Russian petroleum products, diesel fuel in the first instance, to other markets," the Central Bank said.

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