Russia's oil prices hit bottom along with the war.

Russian Oil Prices Experience Historic Drop

With recent developments, Russia's crude oil prices have fallen to their lowest level since the start of the Ukraine war. The deepening of 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 about 40 dollars per barrel from oil sent from the Baltic and Kazmino ports. In the last three months, prices have fallen by 28% due to restrictions imposed on major energy companies like Rosneft and Lukoil.

Western Pressures and the Global Market

The increasing pressure from Western countries on Russian oil trade is making it increasingly difficult for the country to sell and deliver oil. This pressure is also targeting major buyers like India. Additionally, global benchmark oil prices have fallen, dipping 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 war-related expenditures. The former Trump administration is attempting to facilitate 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. Furthermore, Chinese refineries are currently benefitting from the largest discount on crude oil imported from Russia this year.