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The drop in oil prices has sent the value of Russia’s flagship Urals crude grade back into the $60 range.
Urals crude was assessed as low as $66.19 at the port of Primorsk in the Baltic Sea last week, according to Argus Media Ltd. That’s the lowest since July 25, just days after the grade broke through the Group-of-Seven price cap of $60. Brent crude futures have retreated in recent weeks on concerns about global consumption.
Since late last year, the US and Group-of-Seven nations have imposed a cap on the price of Russia’s crude exports that prevents access to services like shipping and insurance if a cargo trades above $60. The policy came under fire over the summer when all of Russia’s crude was assessed by Argus above that level for the first time.
In recent weeks both the UK and US have carried out some of their first enforcement actions around the policy. The US sanctioned two vessels, one owned by a Turkish company, for carrying cargoes above the cap while using western services. Last week the UK sanctioned Paramount Energy & Commodities DMCC for helping Russia avoid the cap.
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