Russia's Urals Oil Price Slides Amid Global Tensions

Russia's Urals oil price discount widened to 23% from the global Brent benchmark, influenced by renewed Western sanctions. The U.S. recently imposed restrictions on Russian oil giants, and Russia's oil revenues face further declines due to falling prices and a stronger rouble, despite steady export levels.

Russia's Urals oil price witnessed a significant increase in its discount against the global benchmark Brent crude, expanding by six percentage points to 23% this month, according to a Russian central bank review issued on Thursday.

The broadening discount, although less drastic than in the wake of 2022's initial Western sanctions, underscores an intensifying squeeze on Russian oil earnings—a pivotal component of the nation's budget.

Last month, the United States ramped up restrictions on major Russian oil firms Lukoil and Rosneft. The central bank reported a discount hovering around 15% during the second and third quarters, escalating to 17% in October. Russian oil and gas revenues may dip by 35% in November due to diminished oil prices and a stronger rouble, as per Reuters calculations.

(With inputs from agencies.)