FX.co ★ Urals Oil Price Around $62

Urals crude has consistently traded in the range of $61 to $65 per barrel since August, in comparison to Brent crude, which has been priced between $65 and $69. This represents the smallest price disparity since the onset of the conflict in Ukraine in 2022. China continues to be the largest purchaser of Russian crude oil, while Russia remains India's primary crude supplier. Despite a strong campaign from US President Trump urging India to reduce its imports to exert pressure on Moscow to cease its military activities, India did not comply. As a result, Washington executed its warning by instituting a 50% tariff on Indian imports, commencing on August 27. In 2022, the G7 established a price ceiling of $60 per barrel for Russian crude, and while the US did not partake, the European Union and several G7 allies now plan to decrease this limit to $46.50, despite ongoing skepticism regarding its likely success. Since this cap was instituted in December 2022, Urals crude has predominantly traded above $60, accounting for approximately 75% of trading days, buoyed substantially by transactions involving so-called "dark fleets," as reported by Reuters.