Urals crude prices at Russia's Baltic and Black Sea ports fell to their lowest levels in one and a half months this week, according to Reuters monitoring and LSEG data, as the dated Brent benchmark also weakened and freight costs stayed high.
Free-on-board prices for Urals crude for loading at Primorsk, Ust-Luga and Novorossiysk this week fell to around $80 per barrel for the first time since early September.
Increased supply in physical markets for prompt dates weakened the dated Brent benchmark.
High freight costs also influenced Russian sellers' revenues, traders said.
The availability of tankers and extreme war risks in the Black Sea and the Red Sea make shipping very expensive.
Urals differentials also weakened in India, the main market for the grade, to near parity with dated Brent.
Weak refining margins in Asia reduced buying appetite for crude.
Fuel supplies to world's market have been restored in part by a US-Russia agreement for diesel supplies and China's increase of fuel exports.
The Urals FOB prices jumped above $100 per barrel in September and October as a result of oil export disruption caused by the US-Israeli war with Iran.
Urals crude at Russia's western ports jumped above $110 per barrel on September 16 to the highest level since April 2026.
Changes in Urals prices have a significant impact on Russia's oil and gas tax revenues and overall budget income as they are an indicator used to calculate the oil extraction tax.
(Editing by Barbara Lewis)
