Bloomberg: Discount On Russian Oil Reached The Lowest Level Since 2022

• 29.07.2025, 21:03

$11.45 a barrel.

Russian Urals crude has been trading at a minimal discount to benchmark prices since the start of the special operation in Ukraine. This suggests that the new European sanctions have not yet had an impact on the market, writes Bloomberg, citing sources.

Urals oil has been trading at an average discount of $11.45 per barrel to the North Sea Dated (this is an Argus agency quote based on the price of five North Sea oil grades, including Brent) in recent days. This is the "narrowest" price gap since February 2022, the material said.

The discount has fallen despite the 18th package of sanctions against Russia, which the EU adopted on July 18. In particular, the price ceiling on Russian oil was lowered from $60 (effective from 2022) to $47.6 per barrel, it was decided to impose a ban on imports of petroleum products produced from Russian crude oil from third countries, except Canada, Norway, Switzerland, the UK and the US. In addition, Europe decided to completely ban transactions regarding Nord Stream and Nord Stream 2, including for the provision of goods or services.

European diplomacy chief Kaia Kallas called the new sanctions package "one of the toughest ever."

The EU's restrictions have yet to take effect. The new price ceiling is set to go into effect on September 3. The Bloomberg piece says that the discount is also helped by demand for Russian oil in Asia, particularly China, and limited supplies.

Oil discount is the price difference between a certain grade of oil and the benchmark (usually Brent), arising from differences in oil quality, market conditions or foreign policy factors.