Product Message

Bloomberg reports that the price of Russian oil significantly surpasses the price cap established by the G7, intended to curb Moscow's revenue for military actions in Ukraine, indicating substantial non-compliance. According to Argus Media, Russia's primary Urals grade commands around $75 per barrel upon departure from Baltic and Black Sea ports. However, by the time Urals cargoes reach India, the price escalates to $88 per barrel, a mere $3.80 below the benchmark Brent, as per Argus data. Additionally, Russian ESPO crude leaving Kozmino port fetches $84 per barrel, consistently evading the price cap for approximately a year. Further disparities arise as 23% of Russian crude supplies in March were insured against spills and accidents by members of the International Group of P&I Clubs. This indicates that traders could attest that the cargo's value was significantly lower than what Argus had priced Urals at. Moreover, a smaller portion was transported via Greek tankers, all insured by Western insurers.

#india  #russia  #pricecap