Russian oil prices soar to 13-year high amid war in Iran — Bloomberg
Photo: prices of Russian oil have surged sharply (Getty Images)
Prices of Russian oil have surged to a 13-year high amid a global price increase driven by the war in Iran, according to Bloomberg.
Bloomberg notes that unexpected oil revenues are easing pressure on the Kremlin’s finances amid the ongoing aggression in Ukraine.
At the Novorossiysk port, the price of Urals oil reached $114.45 per barrel. The average discount on Urals from Russia’s western ports compared to the global benchmark Dated Brent narrowed to $27.75 per barrel — the lowest level since mid-December.
At the same time, the agency points out that Russia’s ability to benefit from the global rise in oil prices is being undermined by Ukrainian strikes on its export infrastructure and oil refineries.
In particular, attacks on Baltic Sea ports, from which about 40% of Russian oil is shipped, have caused disruptions in cargo loading and hit the aggressor country’s revenues.
Strikes on Russian ports
Due to large-scale Ukrainian drone attacks on the Ust-Luga and Primorsk ports, Russian oil exports via the Baltic Sea have effectively been brought to a "standstill."
It is also noted that in the last days of March, Russia’s seaborne crude exports plummeted, causing the Kremlin to lose over $1 billion in revenue in just one week.
In addition, strikes on infrastructure have led to overflowing Russian storage facilities, as oil shipments are being blocked. According to analysts, this situation makes a reduction in Russia's oil production inevitable, as there is nowhere left to store it.
