Urals Crude Oil Prices Climb#
On Wednesday, prices for Russia’s Urals crude oil at western ports rose above $100 per barrel. This increase was influenced by a rise in Brent crude prices, which is a major global benchmark for oil pricing.
Current Pricing Details#
As of Wednesday, Urals crude from the Russian port of Primorsk was valued at approximately $104 per barrel on a free on board (FOB) basis, which means the price excludes shipping costs. This marks an increase of about $6.50 per barrel from Tuesday. At the Novorossiisk port, the Urals FOB price reached around $106 per barrel.
Market Influences#
The recent rebound in prices follows a broader market rally, with oil prices jumping more than 6% on Wednesday, reaching their highest settlement in weeks. This surge is partly due to stalled negotiations between the United States and Iran, raising concerns about potential supply disruptions from the Middle East.
Economic Context#
Urals crude had previously traded above $100 per barrel for most of April, driven by a global energy supply squeeze linked to ongoing tensions in the region. However, prices dipped below this threshold late last week. While high freight rates have reduced profit margins for exporters, the overall impact has been mitigated by rising global crude prices due to geopolitical tensions. Additionally, the price of Russian oil in roubles used for tax calculations exceeded the federal budget assumption by 46% in early April, reflecting the global oil price rally. Russia's federal budget for 2026 is based on an oil price of $59 per barrel.