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Tamara Yu. Safonovaа
а“Independent Analytical Agency of the Oil and Gas Sector” LLC (NAANS-MEDIA)
DOI: 10.22394/2070-8378-2023-25-2-52-60
Abstract:
The article provides the author’s system for the fair appraisal of Russian oil, including the list of indicators for regular publication. The author proposes to use the formula for oil settlements that includes a price index for the standard oil Brent, formed on the Moscow Exchange (MOEX), or Dubai, formed on the DME, and a differential (premium or discount) mutually agreed between Russian producers and importers. During the post-Soviet period, foreign countries controlled the price of Russian energy resources. Russian oil companies export oil according to formulas that include quotes from Platts, a US-based pricing agency. The price formulas are used for the settlement of Russian oil deliveries not only for exports but also for the domestic market. The ongoing depreciation of Russian oil at half the world price is a «challenge» to act vigorously to change approaches to price formation. The restrictions imposed by G7 countries and the EU on Russian oil deliveries by sea, the imposition of price ceilings, non-market pricing methods, and the manipulation of price caps for sales combine a signal for an urgent transition to a national system of Russian oil pricing, involving the consolidation of actual transaction data from Russian producers themselves.
Keywords:
national price indicators, embargo, Urals and ESPO oil futures, Russian oil discounts
Received:
December 30, 2022
References:
Avdeeva L.A., Solovieva I.A. Methodological approaches to oil pricing considering its quality. Internet-zhurnal “NAUKOVEDENIYE”. 2017. No. 2. https://naukovedenie.ru/PDF/48EVN217. pdf. In Russian
Bushuev V.V., Konoplyanik A.A., Mirkin Ya.M. Oil prices: analysis, trends, forecast. Moscow: Izdatel’skiy Dom “Energiya”, 2013. In Russian
Katyukha P. Global oil market on the threshold of price redistribution. Rossiyskiy vneshneekonomicheskiy vestnik. 2020. No. 2. P. 119–122. In Russian
Maslennikov A.O. The largest banks in the oil market: impact on the pricing mechanism // Restructuring the world energy markets: opportunities and challenges for Russia. Moscow: IMEMO RAN, 2015. P. 14–19.
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