Russian Oil Plunges With Top Producers Days Away From Sanctions
What’s happening?
Russian oil prices, particularly for Urals crude, plunged to their lowest in over 2½ years — touching about US$36.61 per barrel for cargoes from Novorossiysk.
The drop comes just days ahead of U.S. sanctions set to hit Rosneft and Lukoil, the country’s two biggest producers.
Why it matters?
The looming U.S. sanctions are spooking major buyers. India and China, two of Russia’s biggest customers, have sharply reduced or paused purchases ahead of the Nov. 21 cutoff.
With fewer buyers willing to deal with sanctioned companies, Russian oil is being forced into steeper discounts.