Record high since start of war: Russian oil prices soar due to Middle East conflict
Illustrative photo: Russian oil rises in price amid the war in Iran and US sanctions easing (Getty Images)
The cost of Russian oil for India has risen to its highest level since the start of the full-scale war amid rising global prices. Urals grade oil delivered to the country's west coast is priced at $98.93 per barrel, according to Bloomberg.
The agency notes that the price increase is being recorded due to the situation in the Middle East, which is driving up the cost of all energy resources.
At the same time, the discount on the aggressor country’s oil compared to Brent crude has narrowed — it has fallen to $4.8 per barrel, the lowest level in over four months.
The sharp rise in Russian oil prices has also been influenced by the US Treasury’s decision to ease restrictions on the purchase of Russian energy resources that were already at sea.
Previously, this easing applied only to India, but now it extends to other countries to help curb energy market price growth.
After receiving approval in March, Indian companies, including Indian Oil and Reliance Industries, purchased about 30 million barrels of Russian oil. Urals prices also increased at western ports of the aggressor country — to $73.73 per barrel, exceeding the figures planned in the Russian budget.
Russia’s oil revenues
The Financial Times reported that the closure of the Strait of Hormuz and the sharp rise in oil prices are bringing the Russian budget up to an additional $150 million in revenue daily.
In addition, Ukrainian President Volodymyr Zelenskyy revealed the so-called barter between Moscow and Tehran. Specifically, Russia supplies Iran with weapons and uses revenues from energy exports to support the Iranian regime, which threatens security in the Middle East.
The Ukrainian president noted that the aggressor country earned about $10 billion in just two weeks of the Middle East conflict. He emphasized that this encourages the Russian dictator to continue the war.
