High global demand sends Russian Urals crude oil price soaring

Russia’s Ministry of Finance said on Wednesday that the average price for domestic Urals oil benchmark stood at $62.50 per barrel in April, which is a 340% increase in annual terms.

According to the ministry, in the first four months of the year the average price for the Russian export oil brand was $60.47 per barrel, compared with the average price of $41.04 per barrel during the same period of 2020.

Experts say that the price rise was primarily due to the recovery of global demand for fuel and the fulfillment of the terms of the OPEC+ deal. 

The current rise in the price of Russian oil is also due to the peculiarities of its composition, says Viktor Parno, Argus’ vice president for business development in Russia, CIS and Baltic States. He explained to RT Russia that Urals crude is characterized by a high sulfur content, while Brent and American WTI are considered lighter grades.

“From time to time, the market situation develops in such a way that medium-heavy varieties become more popular than light ones. In terms of supply volumes, Urals is now the most demanded oil grade in Europe,” Parno said, adding that the main importers in the region are Germany, Poland, the Netherlands, Belgium, France, and a number of other EU countries.

According to him, China and Japan are also among the major buyers of Russian oil.

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