SHIPPING COSTS FOR RUSSIA'S URALS OIL REACH HIGHEST SINCE APRIL

The figure is $7.9 million per million barrels, up from $5.6 million at the end of last year. That's more than double the cost of oil from other producers, Bloomberg reports, citing data from Argus Media.

The cost of shipping Russia's flagship Urals crude continues to rise due to farewell sanctions imposed in January by the outgoing Biden administration. The cost of transporting 1 million barrels of Ural crude from the Russian Black Sea port of Novorossiysk to India’s west coast is the highest since April, according to Argus Media.

Cost of transporting Russian Ural oil from Novorossiysk to India in dollars per tonne. Source: Bloomberg

The figure is $7.9 million, up from $5.6 million at the end of last year. That is more than double the cost of oil from other producers.

In January, the United States imposed unprecedented sanctions on Russian oil trading vessels, blacklisting about 160 vessels and targeting major Russian companies, insurers and brokers. Since then, the cost of transporting Russian oil has risen steadily, and there are signs that exports have become more difficult in other respects as well.

However, there is much uncertainty about the future policy of the United States towards Russian oil. The public spat between President Trump and his Ukrainian counterpart last week has prompted investors around the world to reassess the prospects for peace talks.

The price of Urals in the port of Primorsk fell last week to $57.97 a barrel, while in Novorossiysk it fell to $58.32 a barrel. Both figures are the lowest since September and below the G7 ceiling of $60 a barrel.