Russian oil is rising in price due to increased demand in Asia.
9.03.2023 - 10:00
The price of russian oil is rising due to the fact that the number of buyers of raw materials from russian Federation is increasing in China and India.
The cost of Rosneft is growing in parallel with the number of its buyers in Asia. This puts pressure on small refineries that consume cheap oil, Bloomberg reports.
As traders note, the supply of russian Urals and ESPO oil, as well as fuel oil, has increased in recent weeks. In addition, there is increased interest from state-owned and large private refiners in China (Sinopec, PetroChina Co. and Hengli Petrochemical Co.), and increased demand for Rosneft in India.
The price of ESPO oil was about $6.5-7.0 below the price of Brent, taking into account delivery to China. The price of the leading russian brand Urals was $10 below this indicator, which is $2 more than last month, one of the strongest price swings since December 5 (since the “price ceiling” for Rosneft, which is transported by sea, took effect).
In December of last year, the import of russian oil and oil products to India amounted to 1.6 million barrels per day, according to the estimates of the International Energy Agency. Part of Rosneft, which is bought by China and India, is redirected to Europe without a discount.
In January 2023, the average price of a barrel of Urals oil was $49.48, in February – $49.56, according to data from the Ministry of Finance of russia. Over the year, the price of a barrel of this brand fell by 1.7 times, along with russian revenues, the drop of which is estimated at the level of 35%, while expenses increased by 59%.
