Russian oil prices have fallen to a three-year low: how much do Russian energy resources cost now?

Last week, the price of Russian Urals crude fell to $36 a barrel, its lowest level in 2.5 years. The drop came ahead of new US sanctions against Russia’s two largest oil companies taking effect.

This is reported by Bloomberg .

It is noted that the price of Russian Urals oil from the port of Novorossiysk fell to $36.61 per barrel on Thursday. This became the minimum value since March 2023.

The journalists added that Urals quotations in the Baltic Sea showed a similar decline, according to Argus Media. Both indicators recovered slightly the next day, but remained at multi-month lows.

The drop in prices is putting additional financial pressure on Russian oil companies. The drop in profits will reduce tax revenues for the Kremlin, which is largely financing the war in Ukraine. Oil and gas provide about a quarter of Russia’s state budget revenues.

According to Argus, discounts on Urals relative to Brent have increased to $23.52 per barrel. This is the highest level since June 2023. Such dynamics indicate caution among buyers, who are reducing purchases of Russian fuel.

Journalists also emphasize that the US has warned international traders and companies about the risk of secondary sanctions if they purchase Russian oil.

According to Argus, even when delivered to China and India, Urals costs a few dollars less than Brent, excluding shipping costs.

Recall that the United States seeks to eliminate Russian gas from Europe , conducting an active diplomatic campaign to replace it with American liquefied natural gas. This is evidenced by data according to which Washington uses the phrase “to the last molecule” in its negotiations.

As you know, the United States administration has lifted the restrictions on drilling in the Alaska National Petroleum Reserve that were introduced in 2024. The decision allows for the resumption of oil and gas production in the territory , which has been considered a strategic energy reserve for over a century.

By the way, the Ukrainian night attack on the port of Novorossiysk temporarily stopped about 2% of world oil exports . The attack was one of the largest on Russian oil export infrastructure in recent months.

It was previously reported that India has significantly reduced its imports of Russian oil after Washington imposed sanctions and tariff restrictions. This has already significantly affected energy exports from Russia and is creating additional pressure on Moscow.

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