The discount on the Russian export grade of Urals oil in Europe in relation to the standard reached on Thursday, February 24, the maximum size in the entire history of observations since 1990, according to the international pricing agency Argus. There was no demand for spot lots due to fear of US sanctions.
So, in the north-west of Europe (cif Rotterdam) on Thursday, the discount increased immediately by $4.35 per barrel, to $11.65 per barrel for the North Sea dated variety, which is calculated by Argus. In the Mediterranean (cif Augusta), the discount on Urals batches of 80-100 thousand tons increased by $6.96 per barrel to $9.96 per barrel. The prices themselves in both regions settled at $94.8 and $96.49 per barrel, respectively.
“There was no demand for spot shipments of the variety, as buyers expected the imposition of tough US, UK and European Union sanctions against Russia as a result of a special military operation on the territory of Ukraine. Some banks refused to open letters of credit for the purchase of Russian oil, three market participants said.