The central bank of Russia says that the discount on Russian Urals oil prices has increased to 23% by November.

The Russian central bank announced on Thursday that the discount between Brent and Urals, which is Brent's global benchmark oil, has increased by six percentage points to 23% this month.

These discounts are less severe than the first wave of Western sanctions that began in 2022 but they still reflect increasing pressure on Russian oil revenue, which is a vital lifeline for Moscow’s budget.

Last month, the United States imposed strict restrictions on Russian oil companies Lukoil & Rosneft.

The central bank reported that the discount was close to 15% during the second and third quarterly periods, with 17% being reached in October.

According to calculations, Russia's oil-and-gas revenue could fall by 35% in November due to lower oil prices and a stronger rouble.

The central bank said that the Russian oil production averaged 8.995 millions barrels per day during the second quarter. This rose to 9.38million bpd in October, as the Organization of the Petroleum Exporting Countries (OPEC+) has begun unwinding voluntary production cuts.

Despite sanctions, Russia’s oil exports remain at near-peak levels. This is due to OPEC+ production allowances, and refinery shutdowns caused by Ukrainian drone attacks. (Reporting and writing by Elena Fabrichnaya, Olesya Astakhova; Guy Faulconbridge/Vladimir Soldatkin)

(source: Reuters)