Russian Urals crude was almost 40% cheaper than Brent in March

According to Russia’s Ministry of Finance, the price of Russian Urals crude averaged $47.85 per barrel in March. Compared with the price of North Sea Brent crude, it was around $31, or almost 40%, lower. It was also below the price cap set by Western countries. Reuters reported this today. Russia has been targeted by extensive economic sanctions imposed by Western countries as a result of its attack on Ukraine last year.

Urals crude was almost half as cheap last month as in March last year, when it averaged $89.05 per barrel. Its price also fell compared with February this year, when it averaged $49.56 per barrel.

The European Union, together with the G7 group of advanced economies and Australia, imposed a price cap of $60 per barrel on Russian seaborne crude oil from 5 December last year. If the cap is exceeded, transporting the oil and insuring its transport are prohibited. Price caps on Russian oil products also came into force on 5 February.