After negotiations, OPEC + prices for the reference Brent jumped from $ 22 to $ 33 per barrel, and the Russian grade Urals is trading at almost half the price. Sokol-produced oil in Sakhalin costs $ 11.75 - $ 8 less than Dubai.
We have to recall that Urals shipments for delivery to North-Western Europe on Monday cost $ 17.5 per barrel, and on Tuesday when shipping from Novorossiysk, the price was $ 19.85 per barrel.
It is worth noting that Brent futures, as stated by RusEnergy partner Mikhail Krutikhin, "do not reflect the real price of physical oil, but the price of a financial instrument."
The cost of physical deliveries is not tied to a futures contract, but to a Dated Brent marker. If earlier their quotes were almost the same - except maybe by $ 2-3, now this discrepancy exceeds $ 10. DB on Tuesday was 22.48.
Note that Asian markets are ruining Russian oil prices faster than European ones. The discount on Sokol, whose main producer is Rosneft, was a record. A batch of 700 thousand tons with delivery in early June was sold at a tender on Friday. According to TOSOM, at the current cost of a barrel of Dubai oil ($ 19.75), Far Eastern raw materials went to the buyer at $ 11.75 per barrel.
Sokol is used mainly for jet fuel, and demand for it fell in connection with the collapse of air travel.
Recall that Moscow and Riyadh are still trying to sit at the negotiating table. Meanwhile, US President Donald Trump gave the command to remove 10 million barrels from the market daily. Every day, 25 million barrels of oil produced on the planet are redundant. Goldman Sachs commodity strategist Michael Curry stated that "56 supertankers a day go nowhere."
According to Bloomberg, the Russian Federation and Saudi Arabia are close to an agreement. We recall that the meeting of OPEC + is scheduled for April 9th. The next day, a meeting of the heads of the G20 Ministry of Energy will be held.
Note that Riyadh requires Russia to reduce oil production more than other countries. According to the cunning calculations of the Saudis, April volumes need to be reduced. That is, volumes for the period when both Saudi Arabia, Iraq, and the UAE have already managed to increase production, but Russia has not. It turns out that Middle East oil production will actually remain with its own. Moscow did not agree with such mathematics. The Russian Federation insists that reduction quotas be applied to the average volume for the first quarter, when Riyadh pumped up to 9.8 million barrels per day.