Urals crude oil is one of the main export grades of Russian oil
Russian brand of export oil produced by mixing heavy, high-sulfur oil from the Urals, Volga region and light Khanty-Mansiysk Siberia Light. Density about 840 kg/m3, 36.5° API, sulfur content up to 0.57%).
Mixing takes place directly in the Transneft oil pipeline system.
In accordance with the standards of the variety, the resulting mixture Urals should contain no more than 1.8% sulfur and have a density within 860-871 kg/m3 (31-32° API).
|Density (20 °С), кг/м3||860 — 871|
|Density API||31 — 32|
|Sulfur content, %||no more than 1,8|
The total sulfur content in Urals grade oil should not exceed 1.2-1.4 %, density in API — 31-32 degrees (or 860-871 kg/m3).
For comparison, Brent and WTI grades have a density of 38-40° API and sulfur content of not more than 0.2-0.4 %, and middle East oil of Oman and Dubai grades has a density of 30-33° API, sulfur content of 1.1-2.1 %.
The total volume of supplies of Urals (about 3 million barrels per day) and ESPO (1 million) is quite large and, according to 2015 estimates, exceeds the volume of supplies of marker varieties BFOE (Brent), Oman, Dubai.
The UralsOIL is an independent marker variety from the late 2000s. Its value is determined based on the price of Brent crude oil price with some discount as inferior to foreign varieties as density and sulfur content.
The main producers of Urals oil are vertically integrated giants:
- Gazprom Neft
Oil is transported through the Transneft oil trunk pipeline system and shipped to:
- the Baltic ports of Primorsk and Ust-Luga
- Black Sea port Novorossiysk
- through the Druzhba oil pipeline system in the direction of Adamov Zastava (Poland), Budkovce (Slovakia), Feneshlitke (Hungary), to the Belarusian oil refineries Naftan and Mozyrsky
- in Kazakhstan
Price of Urals crude oil
The Urals OIL is the main Russian oil exported, it is traded at a discount to Brent of $ 1-1.5.
The overwhelming share of Russian oil is exported to Europe. The price of Urals oil is highly dependent on the volume of oil supplies by Iraq, since Kirkuk’s Iraqi oil is close in quality to Russia’s. The abolition of UN sanctions against Iraq could lead to a significant increase in its production, in which case the Urals discount to Brent could seriously increase.