Russian Urals Crude Hits 14-Month Low, $6 Below Western Price Cap

Russian Urals crude prices in Baltic ports sank to $6 below the Western price cap of $60 a barrel, marking their lowest level since January 2024. This is down to poor Brent prices and tight freight rates. The decrease in price below the ceiling can pull in additional Western shipping and insurance firms into the market, counterbalancing steep freight rates. The recent drop in international benchmark Brent prices and a surge in freight rates caused Urals oil loading from Baltic ports to be estimated at $53.95 per barrel on a free on board basis for Tuesday, Reuters calculations showed.

 

Source: Reuters, March 12, 2025