Russian crude oil is currently selling for about$ 75 per barrel, which is significantly higher than the$ 60 capimposed by the Group of Seven ( G7 ) in 2022, according to the most recent oil price-monitoring data.
Russian crude is trading also higher in markets like India, which suggests the G7’s effort to drain its oil-producing country is failing.
According to a recent analysis by one of the top oil price trackers, Argus Media, Bloomberg News , Russian oil is currently valued at$ 75 per barrel when it leaves Black Sea and Baltic Sea ports.  ,
In India, oil from the Urals is trading at$ 88 a barrel, which is only a$ 3.80 discount below the global benchmark. After it invaded Ukraine and subjected American sanctions, Russia was once ordered to buy its fuel at steep discounts, but that no longer appears to be the case.
The good news, according to Argus Media, is that Russia pays far more to ship oil to Asian customers than to its old ones in Europe, which make up about$ 7 to$ 8 of profit from each barrel sold, but even those high shipping costs are decreasing, which means more money is being made for Moscow.
The bad news is that these high rates indicate that American shipping firms have n’t been accurately reporting the value of the Russian crude they carry.
Bloomberg reported:
The cap mandates that any eastern company engaged in the transportation of Russian oil receive a formally certified certification, a statement proving that the cargo was$ 60 per barrel or less. If it does n’t, they’re not allowed to provide their services. The fact that Argus’s rates are so far above that amount creates a tension.
While Urals has been above$ 60 almost all year, this month’s surge to well above$ 70 will make]sic ] stretch the credibility of those attestations for traders wanting to keep using western services.
According to statistics compiled by Bloomberg, 23 % of the world’s crude oil supplies in March had plan against spills and incidents provided by members of the International Group of P&, I Clubs. That would have led investors to believe that the goods were priced significantly below what Argus had predicted. A smaller percentage moved on Greek tankers, all of which had support from IG venues, also requiring verification.
According to Bloomberg News, U.S. officials say they will actively impose the rate caps on Russian fuel, but they may not be willing to do so because it may cause more suffering for American consumers at the pump during the 2024 presidential election.
In December, the G7 tightened its sanctions against popular violation. One of the new steps was the “attestation” need for complete disclosure of goods value, which Bloomberg referenced. The intention behind the advertisement was to prevent consumers from paying over-cap charges for Russian oil and hiding the additional charges as shipping costs.
In January, the U.S. Treasury Department asserted that Russia’s oil revenue were significantly impacted by price caps and compliance were rising.  ,
According to the Russian Finance Ministry, oil and gas money decreased by 24 percent last year, but the majority of it was the result of falling oil prices and lower gas prices. By shipping more fuel to new users in China and India, the Russians predicted they would be able to recoup the majority of that lost profits in 2024.
