Russian Oil Prices Collapsed

• 17.11.2025, 16:04

Up to $36 a barrel.

Last week, the price of Russian Urals crude oil fell to its lowest level in two and a half years, Bloomberg reported. The drop came days before U.S. sanctions against two major Russian oil companies took effect.

The price of Urals crude at the Black Sea port of Novorossiysk fell to $36.61 a barrel on Thursday, hitting its lowest since March 2023. According to Argus Media, the same trend was seen at ports in the Baltic. On Friday, prices of both grades rose slightly, Agency noted.

According to Argus, discounts for Urals rose to $23.52 a barrel against Brent, the highest since June 2023.

This suggests that buyers are being cautious in buying Russian crude, Bloomberg wrote. The U.S. has warned of the risk of secondary sanctions against buyers of Russian fuel.

According to Argus, even as Russian oil is being delivered to China and India, it is several dollars cheaper than Brent excluding shipping costs.

Context. Demand for Russian oil on international markets has fallen sharply after the administration of US President Donald Trump announced sanctions against Rosneft and Lukoil on October 22. Thus, the White House is increasing pressure on Vladimir Putin, from whom it seeks an end to the war in Ukraine.

The deadline for businesses to terminate relations with Rosneft and Lukoil is November 21. Some refineries in China, India and Turkey have already suspended purchases from Russia and are looking for alternative sources of supply.

The fall in oil prices will reduce tax revenues for the Russian budget. Oil and gas revenues account for about a quarter of the country's state budget.