Russia's Oil Prices Hit Rock Bottom Along with the War

Russian Oil Prices Experience Historic Decline

With recent developments, Russia's crude oil prices have fallen to their lowest level since the beginning of the Ukraine war. The deepening sanctions, significant discounts offered by the country's oil industry, and the decline in benchmark futures are among the main reasons for this situation.

Prices and Export Figures

According to statistics based on Argus Media data, Russian oil exporters are earning an average of around 40 dollars per barrel from shipments sent from Baltic and Kazmino ports. Over the past three months, prices have decreased by 28% due to restrictions imposed on major energy companies like Rosneft and Lukoil.

Western Pressures and Global Market

The increasing pressure from Western countries on Russian oil trade is making the sale and delivery of the country's oil increasingly difficult. This pressure is also targeting major buyers such as India. Additionally, global benchmark oil prices have fallen below 60 dollars per barrel for the first time since May.

Financing and Economic Situation

Russia's oil revenues play a critical role in financing the country's wartime expenditures. The former Trump administration is attempting to pursue a diplomatic process to end the war. Meanwhile, Vladimir Putin acknowledged during his recent visit to India that the country's economic growth has slowed.

Import Expectations

According to statements from Indian officials, the amount of oil imported from Russia is expected to decline to around 800 thousand barrels per day this month. Additionally, Chinese refineries have captured the largest discount on crude oil from Russia this year.