The revenue of Russian oil companies continues to decline rapidly following the fall in prices for the Urals oil grade, which is being sold at a discount of almost 50% compared to the Brent oil price.
At the end of the week ending January 4, the average 4-week volume of Russia’s oil export revenues fell to $959 million per week, which is the lowest level since the beginning of the war in Ukraine, Bloomberg calculated based on data from Argus and tanker shipping statistics.
Compared to the beginning of October, Russia’s oil revenue has dropped by 35%, or approximately $500 million per week, and compared to the beginning of December – by 15%, or almost $200 million per week.
The average price of Urals, the main export grade of Russian oil companies, has plummeted by almost 40% since the US announced sanctions against “Rosneft” and “Lukoil”. In the first days of January, Urals was being sold at $36.69 per barrel in the ports of the Baltic Sea and $34.82 per barrel when shipped in the Black Sea. The average price of the ESPO oil grade from the Far East, which is purchased by China, has dropped to $47.55 per barrel (The Moscow Times).
