MOSCOW: November crude cargos on the Russian domestic market were more than 2,000 rubles per tonne cheaper than October cargos due to a higher customs duty and a stronger ruble.
Despite the price drop, producers in West Siberia were able to secure a premium of about 900 rubles per tonne above the export parity price – much more than last month – as refineries were restarting after maintenance and were more flexible against the backdrop of lower overall prices.
“A 2,000-ruble drop is certainly good news for refiners, which suffer from low margins and financing problems,” an industry source said.
Prices for October cargos jumped by almost 3,000 rubles per tonne due to higher Brent prices and a lower customs duty. The duty will increase to $97.10 per tonne in November from $91.50 this month, according to calculations by the Finance Ministry.
Brent, on which the export parity price is based, was trading at $47.20-48.00 a barrel when November cargos were being sold, which was close to the previous month but the ruble was almost 4 rubles stronger at 62 per $1.
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