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Price Of Russia’s Urals Oil For Northwestern Europe Fell To $19

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Price Of Russia's Urals Oil For Northwestern Europe Fell To $19

ILLUSTRATIVE IMAGAE

The Urals oil price for northwestern Europe fell to $18.64 a barrel ($5.25 lower than it was), Argus Media reported on March 19. The discount for Urals reached $4.18 a barrel under the Brent benchmark. This is the lowest price of Urals since 2002.

The Urals price is falling amid the decision of Saudi Aramco to provide unprecedented discounts for its oil and increase output to the market. Saudi Arabia sells its Arab Light and Arab Medium oil with a discount of $5-100 a barrel under the Urals. Experts call the Saudi actions a direct attack on Russia’s ability to sell oil on the European market.

The $42.40 Urals price is the price at which Russia’s budget is balanced, the Russian Finance Ministry said on March 9. Despite this, Russia’s National Wealth Fund had as of March 1 liquid assets worth US$150.1 billion, or 9.2 percent of Russia’s gross domestic product (GDP). Therefore, the country should be able to compesate the decrease of oil sales profit for some period of time.

However, if oil prices fall and furher, and the economic meltdown around the world continue, Russia could face significant economic damage. The situation will be especially complicated because of the ongoing cosntitutional reform in the country that followed a series of unpopular economic decisions that led to an increase of social tensions in the country. The entire system of ‘energy revenues’, which has been among the cornerstones of the government’s economic policy, is shrinking.

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  • Jake321

    And this is just the beginning of Putz Putin the Poisoner’s and his RF’s demise. As the oil price war intensifies and the Pandemic hits home in Russia, the oil price will go negative, the Russian economy will tank, the Ruble will be worth what a Kopeck is worth today and the social unrest that the Kremlin has been exporting to other countries will come home to roost with a vengeance. The thankfully dead Soviet and Czarist Russian Empires will welcome them down in the dustbin of history and the folk in Siberia will likely need to learn Mandarin. Pass the popcorn.

    • Dick Von Dast’Ard

      Erm… The Yank economy has already tanked.

      Ripe for a new Civil War.

    • thanatos

      do not fantisize! ruskies love dictators and poorness.

      • JIMI JAMES

        Dictators are smarter than you inept utterly vile and corrupted cia stinktanked poodles!
        What defines democracy? LISTEN UP STUPID GIMP,75% PEOPLE VOTED PUTIN IN!
        FRGN DUMBASS,UNLIKE MOST OF YE DEMENTRY LOW IQ UNELECT NAZI UNIONIST!

    • Daniel Miller

      you do realise that oil is not even 20% of the total Russian GDP right?
      Also you do realise that the coronavirus is desemating the EU and US not the Russian Fedration.
      Russia still has a working manufacturing sector while other nations in the EU do not.

      • Dick Von Dast’Ard

        Russia exports roughly $120 billion in oil exports. (less than 10% of the economy)

        It could supplant all losses with sales in food stuffs. (barley, wheat, milk and sugars etc)

        Grain superpower.

    • Rhodium 10

      But meanwhile accord Harbin consulate ” the volume of trade and cargo transportation between Russia and China are growing… more than 300 trucks and 40 cargo trains cross the border in both direction everyday..China are increasing demand of wood, soy,coal,ore,fertilizers due to the begining of seasonal field works”…

    • JIMI JAMES

      8-9% russian gdp,problem is you liberal retards are so way behind the times,no wonder RUSSIA WILL DECIMATE YOUR FAKE,PHONEY AND FALSE NOCANDO SURPLUS EVER AGAIN!
      I just can’t wait,yeah bring it on fellas,keep them beaut huge discount barrels rolling,
      better price at the bowsers too,more realjons to be created at ye fake stocks expense ot is that no good because all you can do is steer the tricycle in ye complex? Who cares,FREEDOM!

  • Dick Von Dast’Ard

    3…2…1… And the Straits of Hormuz closes due to coronavirus fears.

    • Rhodium 10

      Saudi Arabia also will face problems in is bugdet due to low prices….

  • Dick Von Dast’Ard

    https://www.youtube.com/watch?v=8OjV1JcX8IY
    “And so, my dear friends, let us now take a look at the political implications of this ”oil war”.
    The main political event of this year is the U.S. presidential election, which will be held in November.
    And so my dear friends, now read carefully what I am telling you.
    The collapse of world oil prices is largely beneficial to Donald Trump, as this will allow lowering fuel prices in the U.S. in the midst of an election campaign……..(continuation of the text in the video itself).”

    • thanatos

      i dont read your bullshit. the real answer is: putins miscalculation.

      • Dick Von Dast’Ard

        U.S. will be lucky to get away with a $3 Trillion deficit this year and a 10% – 15% GDP drop… Not good if you can’t balance your books at the best of times!

        • thanatos

          in comparison to russia yanks can print dollars

          • Dick Von Dast’Ard

            Yes can be used as toilet paper too.

          • JIMI JAMES

            Australia is printing more cash,which is bad news for cashless tyrant banks,unlike usa we major producers of factual gold and other vital resources like you know coal,gas,uranium,power the generators that power your green musk gogo mobile
            USA IN MEARLY ON LIFE SUPPORT,NO MATTER WHAT SOROS TROLLS COMBINED CONTRIBUTED TO USA’s demise,too many liars and counter productive kweers,thats why,oh well atleast you can invest in gold,that is if you can reapay ye debts?

      • JIMI JAMES

        Putin’s smarter than you low iq sorosbots,make no mistake,ye kweers seen nothing yet!

  • Snowglobe
    • AM Hants

      This might interest you, but, it relates to the cost back in 2016.

      In Russia, It Only Costs $2 to Produce a Barrel of Oil.
      Пожаловаться

      Compare with how much it costs these nations, whilst factoring into the equation, that Russia has virtually zero debt to maintain. The only debt they have, is owing to using trading in foreign currencies for certain goods. There gold and currency reserves can more than cover their minimal debt.

      http://neftianka.com/wp-content/uploads/2016/03/Screen-Shot-2016-03-31-at-6.35.55-PM.png

      • Snowglobe

        What we are watching for is the end of the Petrodollar. At some point it is expected that there will be a return to the gold standard and for the globalist bankers to be left holding the debt that they have created for all of us to bear. The speed is picking up and the outcome is going to be a very difficult transition as opposed to a total collapse.

        As always, champagne and strawberries are kept handy. ;-)

        • AM Hants

          I just feel as though the whole world is on some form of medication as absolutely nothing makes sense. Cannot figure if C Virus is a blessing or a curse, depending on who is in control of it all.

          Hopefully the reset button has been switched on, but, by the good side.

          • Snowglobe

            We are still working our way to the reset button being hit. We are still in the calm before. There is speculation that the storm may hit on monday. If the date is wrong it is no matter. We are close to the storm. It is a good idea to have the pantry full. I join you in hoping that the reset button is being tinkered with by the good guys. Either way, what we think or what we want do not matter. The dies have been cast and this will be going full steam ahead.

          • JIMI JAMES

            Australia is the real Top gold player in this situation,0.25% delayed?
            my moneys on the next drop it will hit the fan,people are tired of property inflation

          • AM Hants

            With you on ‘either way, what we want, does not matter. The dies have been cast and this will be going full steam ahead’.

            Good luck and take care, no doubt in for a bumpy landing.

          • Snowglobe

            This will not be happening in isolation. Good luck to you too because the waves will probably be hitting your shores first.

          • AM Hants

            Cheers and what will be will be.

        • JIMI JAMES

          CCCP,spirit will co9me back to daunt the nowadays useless lgbtq economy
          and unlike the russians their fake.phoney and false #1 status shall never be!
          Unlike the russians,the millenial kweers shall not have an answer to true might!

        • Occam’s Razor

          At least there is some good news… Its popcorn time for me. 🤣

          https://www.youtube.com/watch?v=tPk9HSLagVg

      • thanatos

        In Russia, It Only Costs $2 to Produce a Barrel of Oil.

        BS

        • BMWA1

          2.98 according to US data (but this does not include admin., which is a set overhead, and transport, which will vary by distance and volume:

          https://www.google.com/search?q=cost+to+produce+oil+in+russia&rlz=1C1GCEB_enUS870US870&oq=Cost+to+produce+oil+in+Russia&aqs=chrome.0.0l2.7215j0j8&sourceid=chrome&ie=UTF-8

        • JIMI JAMES

          They can do it much less than the sauds,irrespective and todays technology
          is more advanced for output and volume than ever was in history,this aint the 90s

        • AM Hants

          Production costs are in rubles, it is then sold or used to be in $US.

          How much does it cost the $US to produce a barrel of oil?

          Remember when Obama and his good mates in Saudi, tried to manipulate the oil market, in order to hit Russia, back in 2014 or was it 2013? They calculated Russian GDP was 50% reliant on energy sales. Only they never checked out the GDP Budget, which would have shown the energy sales only made up 16% of the GDP Budget, back then. It is even less now.

          Remember the sanctions, with Exxon pulling out of the Siberia gas field project? How the Globalists assumed Russia would have to cancel the project, owing to having no heavy drilling technology? For Russia to turn round, go in-house and get her engineers coming up with a solution. Then the Chinese came on board with investment. The beginnings of a strong Russia-China alliance, both benefitting what the other could supply, for their own needs, whilst turning their backs on the $US.

          Yamal LNG, which the US and UK had no problem purchasing, during a cold spell, when both nations were in dire need of Russian energy resources.

      • Snowglobe

        This is what we have been waiting for. We were not sure what it was going to look like or what form it would take, but we were expecting the banksters to lose control.

        https://twitter.com/Ir0nbelly/status/1243635945045479426

        • AM Hants

          Cheers and interesting. Wonder if much will be said about it?

          • Snowglobe

            Like everything else of importance it will be drowned out by the MSM. It is only a matter of time before it takes on a life of its own though.

            Right now there are two huge ships moving on either coast of the US. Keep a bottle of champagne handy for their true purpose to eventually come out. At this point, like always, we are knee deep in speculation. Make sure to have popcorn handy for that one. ;-)

            https://twitter.com/SECNAV/status/1243579786208907265

          • AM Hants

            Still getting my head around the Fed merging with The Treasury. Then, why would you need a floating Hospital, not too far from Cuba, to take trauma patients?

            Still in believe it 6 months after it happens mode.

          • Snowglobe

            There are two ships. One is going to end up at Los Angeles and the other at New York. We expect that they are going to be involved in draining the swamp. I will let you know when there are more developments. There is no hurry to understand things in these operations. They move as slowly as turning around the Titanic. ;-)

            The world, both friend and enemies are going to have a hard time getting their heads around the Fed merging with the Treasury. Did you ever expect to see the Vatican and Mecca closed down at the same time during your lifetime? Me either. We are living during completely unique times.

          • AM Hants

            Back on the popcorn, with puzzled expression. Owing to ‘what is happening’ puzzled. As still in ‘believe it when I see it’ camp.

            Funny, now they are bringing in the Guatenamo Bay cruise liners, old Harry Windsor and Mucky Markle are setting up base in LA.

            Owing to taking no interest in the Vatican, must admit I am smirking at the fact the Vatican and Mecca have shut down, owing to so called nature. Wonder how the Pope is and didn’t he have Corona Virus? Seen Tom Hanks and his wife are allegedly out of quarentine and back in LA?

            Why did so many CEOs resign in January? Bailing after cashing in, or something riddled by curiosity, after the Davos freebie?

            Need to restock on the popcorn, owing to so much hiding in the detail, courtesy Corona.

            The name makes me laugh, owing to growing up in a generation when ‘corona’ fizzy drinks used to be popular. Talking of laughter, hear old Hilary is finding the Corona Virus death rates worth cackling over.

            Take care and stay safe.

          • Snowglobe

            Well, maybe it will not take as much time as turning the Titanic.

            https://i.imgur.com/IXzuL8u.png

          • AM Hants

            Cheers. Over in the UK the police appear to be in a rush to force through a police state. Horse backed police, huddled together on an isolated beach, praying on isolated ‘dog walkers’. No doubt, who have been stuck at home, self isolating, and the 4 PC horsemen, huddled together, swoop, whilst dog owner goes for daily exercise.

            Quite sinister images.

  • wimroffel

    It looks like the US wants to make the rest of the world dependent on it for oil and gas. That would explain why it has eliminated one producer after another (Iran, Iraq, Libya, Venezuela). My expectation is that isn’t that unhappy with the present “price war”. It will eliminate some high cost producers. In the meantime it looks like the US will protect its own oil and gas industry. Trump has already promised money so that they can survive the low prices. In the meantime the elimination process of competitors goes on: Chevron’s Venezuela exception is ended.

    • AM Hants

      Darling keep up.

      The US had no choice and how much does it cost them to produce a barrel of oil? Didn’t it use to be around $80, back in 2014? Russia can produce for a barrel of oil, for a few rubles, owing to production costs being in ruble and not $US. Saudi, can produce a barrel of oil very cheaply, but, they also have to factor maintaining the nation, with regards their costs.

      Back in the US, they are in dire need of crude oil, which is why they are targeting Iran and Venezuela.

    • thanatos

      this is putins plan, boyo

      • JIMI JAMES

        You seen nothing yet,facist losers,think cias smarter than god,satan calls their bluff!
        Good stuff,c’mon fellas,keep them barrels rolling,who gives a rats arse about fake stock!

    • JIMI JAMES

      Explains why russia filled the void,that was not trumps policy however but nazi deep states!
      Their next move will be to try to blame russia as the aggressor where reality is avert cia blackmail

  • AM Hants

    Another Russia oil sensationalist story. Could not be bothered reading. How much does it cost Russia to produce a barrel of oil? Just a few rubles, excluding transport costs. Russia has stated they are not going to go with OPEC recommendations, so what does everybody expect? A nation that knew they could handle the gamble, unlike the OPEC nations forcing through their demands.

    • thanatos

      important is that the russian budget was calculated at minimum 40 usd/barrel oil.

      • BMWA1

        Look also at Ruble to USD exchange rate, the dollar has climbed 20-25% in recent weeks vis a vis Ruble, so with Russian oil being sold in dollars, the braek-even point also shifts downwards with the Ruble decline. In Russian State budget terms, the break even point would down shift to 30/32 USD under new terms. If we are looking at 20 USD per barrel average in future, the difference is still maintainable for several years because of FOREX reserves as well as State welfare fund, which sits at over 170 Billion USD eq. (this is equal to about three years of Russian defense budget).

        Macro-economically, sanctions have proven Russia to be self sufficient and it is the Global leader in wheat exports.

        Russians social budget and need for imports is very much lower than Saudi remember, so keep that in mind also.

      • JIMI JAMES

        8-9% RUSSIAN GDP?EXPERTS ARE WAY BEHIND THE TIMES,FLOGGED FOR SURE!
        Here on in may the better men win over bankster/ lgbtq hysteria on corona meds,fkn lol!

      • AM Hants

        Yes, but, they did not factor for the Russian GDP Budget, now did they?

        Remember 2013 or was it 2014, when Obama and the Saudis were manipulating the oil market? Hoping to take Russia down. They assumed that Russian GDP relied on 50% energy sales. Ignoring the Russian GDP Budget was only reliant on 16% energy sales.

        It is even less now. How many oil companies, including US and Norwegian went bankrupt, owing to the Obama/Saudi miscalculation, back in 2014?

    • BMWA1

      LNG is further consideration, under very low prices, US producers shipping to Europe do so at a loss.

  • Tudor Miron

    Those that hope that Putin “finally” miscalculated his moves – they seem to be unable to learn. If Russia decided that this is time to start it – it means it is able to walk the walk. Will there be short term losses? Yes, sure. Do you think those are not taken into account?

  • JIMI JAMES

    Russia will sell non performing overseas debt bombs,and subsidise below 25,so it will survive along with
    the sauds whom combined will flood the european markets at the expense of usa/cia/fegemon/isis brand
    C’mon fellas good job,keep them barrels rolling,FREEDOM!

  • Occam’s Razor