SEATTLE (Oil Monster): Russia’s benchmark Urals crude has slid to about $37 per barrel, marking its weakest level since 2020, as tighter U.S. sanctions and intensifying competition in Asian markets weigh heavily on prices. Analysts at Polish energy consultancy Reflex said the downturn accelerated after new U.S. measures introduced in late November, targeting major Russian energy firms following Moscow’s refusal to halt the war in Ukraine.
According to Reflex, the announcement by the U.S. Treasury of sanctions on Rosneft, Lukoil, their affiliates, and Gazprombank triggered a sharp repricing of Russian barrels. On a year-on-year basis, Urals crude has lost $25.78 per barrel, far outpacing the $11.53 annual decline recorded by global benchmark Brent.
The consultancy noted that Urals is now trading at an unusually deep discount, priced roughly $25 per barrel below Brent. Since November 21, when the sanctions came into force, Urals has dropped $13.10 per barrel, while Brent slipped only $0.30.
Beyond sanctions, Asia—destination for over 85% of Russia’s exports—has become more competitive, with Saudi Arabia cutting prices to defend market share.
Lower prices are straining finances, with revenues plunging and refinery output constrained by attacks.
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