Discount on Russian oil to Brent reduced to less than $15 per barrel

RUSSIA managed to reduce the discount on the Russianoil to Brent to less than $15 per barrel, Energy Minister Nikolai Shulginov said in an interview with TASS .

“Discounts are already quite small, and in some areas they are very low. In general, they are now below $15,” he said.

Shulginov added that Russia's partners are already competing for Russian oil and oil products on the market, which allows restoring market relations. “Our oil and oil refining industry is stable. The only thing that affects the volume of production is the agreements within OPEC + on a voluntary reduction in oil production and exports, ”he said.

According to the minister, Russia managed to fully provide finance and insurance for the sea transportation of oil. He also said that Moscow is currently discussing the creation of a new insurance company with friendly countries. “We are considering different options,” Shulginov said.

The discount in the price of Russian oil to the reference grade Brent, which after the introduction of the European embargo reached, according to Argus, $35-40 per barrel, began to decline as early as August 2022, said Deputy Prime Minister Alexander Novak. In February, the government submitted amendments to the Tax Code to the State Duma, providing for a smooth reduction of this discount for the purposes of taxing oil companies: from $34 per barrel in April, it was to be reduced by $3 every month.

In early April, Novak announced a decision to extend a voluntary cut in oil production by 500,000 barrels until the end of the year. per day. A number of OPEC+ countries have taken similar measures, including Saudi Arabia . At the end of the month, the Deputy Prime Minister said that oil production in Russia this year will decrease by 20 million tons compared to last year, to 15 million tons. The IEA reported that in June Russian oil exports fell by 600 thousand barrels . per day, up to 7.3 million barrels. per day, which was the lowest since March 2021.

The fall in oil refining in Russia is due to refinery repairs, the domestic market is provided in full, Novak noted. “Our part of the plants has been put on hold for repairs, which may be the reason for the slight decrease in refining production. But in general, this does not affect the supply of the domestic market in any way, we have enough oil products,” the minister said.