Urals Oil Prices Lowest Since October

Russian Urals crude fell to below $65 per barrel, the lowest in over three months, tracking international benchmark prices as markets priced in expectations that a US-Iran deal could reopen the Strait of Hormuz and unleash additional supply. Brent and WTI crude prices dropped as traders anticipated the return of Iranian exports and easing pressure on global inventories. The possible interim agreement, expected to allow Tehran to resume oil sales, has already prompted tanker repositioning ahead of a gradual reopening of the strategic waterway. Analysts expect flows to recover slowly due to security concerns and operational limits. At the same time, Russia is shipping near-record crude volumes as Ukrainian strikes on refineries push more barrels into export markets. Russian shipments averaged 3.83 million barrels a day in the four weeks to June 14, the highest pace this year.

Russian Urals crude traded around $100 per barrel, moving closer to international benchmark prices as the closure of the Strait of Hormuz tightened global oil supply. Additional support came from a temporary US sanctions waiver allowing international buyers to receive Russian cargoes in an effort to stabilize energy markets. Although Ukrainian drone strikes continued targeting Russian refineries and Baltic ports, Moscow partly offset the disruption through stronger pipeline exports, including resumed Druzhba flows to Hungary and Slovakia. Russia’s oil export revenues continued to climb despite lower production levels, helped by elevated global oil prices and supply disruptions linked to the Iran conflict. According to the IEA, Russia earned $19.18 billion from oil exports in April, up $6.28 billion from a year earlier, even as oil output fell by 460,000 barrels per day to 8.8 million bpd and exports declined to 7.03 million bpd.

Russian Urals crude jumped to around $110 per barrel, the highest since 2013, as global oil prices climbed amid the ongoing Middle East conflict. Disruptions to Gulf supplies through the Strait of Hormuz have pushed crude above $100, with Russia benefiting as buyers seek alternative sources. President Donald Trump said he expects to reach a deal to end hostilities but also threatened strikes on Iran’s energy infrastructure, including Kharg Island, warning that if the strait is not reopened, the US could target oil and power facilities. President Vladimir Putin urged Russian producers to capitalize on soaring prices but cautioned that the surge is temporary. Meanwhile, the US expanded a permit allowing countries to purchase Russian crude, extending a temporary waiver previously granted only to India. Indian refiners, including Indian Oil Corp. and Reliance Industries, have bought around 30 million barrels of Russian crude after receiving approval in early March, according to sources.