Page 13 - FSUOGM Week 05 2023

FSUOGM POLICY FSUOGM

Europe no longer decides price

of Urals oil: Sechin

RUSSIA THE price of Russia’s flagship Urals oil blend is According to Reuters, 70% of Urals cargoes
no longer determined by the European market loaded last month went to India alone. China
Sechin says Asian but by Asia, which is now the top buyer of the and India have also been buying more of other
markets now dictate the grade, Rosneft CEO Igor Sechin said at India popular Russian blends such as ESPO and Sokol,
price. Energy Week. which have been trading above $70 per barrel
“If Russian oil does not enter the European recently – $10 more than the price cap. In com-
market, then there is no reference price. Refer- parison, Urals traded on average for $49.48 per
ence prices will be formed where oil volumes barrel in January, down 42% year on year.
actually go,” Sechin was quoted as saying by Sechin also noted that Russia had increased
Reuters on February 7. hydrocarbon production by 3% in 2022, despite
The EU in coordination with the G7 imposed difficulties caused by political fallout from Mos-
an embargo on Russian seaborne oil imports in cow’s invasion of Ukraine. The company fore-
early December as well as a price cap on Urals casts a further growth of 5% this year.
sold elsewhere. Western shipping companies Rosneft plans to supply as much oil to Nayara
and insurers will face sanctions if they handle Energy’s refinery in India as the plant can accept,
cargoes sold above the $60 per barrel cap. Sechin said, but he noted that long-term growth
In reality, the cap has not yet had an impact in supplies to the facility would depend on
as Urals has been trading in the $40-50 per efficiency.
barrel range since it was introduced. But if the He added that the Sakhalin-1 project in the
price rises, it remains to be seen whether Chi- Russian Far East was now operating normally.
nese and Indian buyers will comply. India and Output tanked after former operator Exxon-
China have significantly ramped up Russian Mobil was left unable to export its cargoes as a
oil purchases over the past year, taking advan- result of sanctions. The US major left the project
tage of Urals’ steep discount to other global in October, claiming its assets had been expro-
benchmarks. priated. ™

Week 06 07•February•2023 www. NEWSBASE .com P13