the Head of the energy Ministry of Russia Alexander Novak asked not to dramatize the situation and recalled that the crisis occurred on the market of securities, i.e. trade in financial instruments, not physical oil.
the Impact of the incident on the Russian market was fairly straightforward and relied more on panic and the overall negative mood of the market due to the pandemic coronavirus. Russian ruble in comparison with the scale of the collapse in WTI reacted to this event very cautiously, rather following the dynamics of Brent, not the peak price of American oil. In the oil market “paper jams” WTI was the only one of the factors nezavisim on the Brent price which is moving in the Urals.
the Volume of Russian oil exports declined because of a “sick” European economy, said a senior analyst UK “the alpha-the Capital” Maxim Biryukov. With the collapse of prices in the U.S. market, the decline in exports is not connected. To sharp fluctuations kotirovok Urals may be more suited than the benchmark Brent and WTI, since the species is little traded on international exchanges in the form of futures contracts. Therefore, in reality, to go in the negative, as happened to the WTI futures, when the provider will pay to the buyer of Russian oil, is quite difficult.
However, the price of Urals will continue to be under pressure from adverse global market conditions. “Local price shocks and expectations of the imminent exhaustion of the stores will continue to push prices down. Now Brent is at a minimum value, and the price of Urals, traditionally traded at a discount to North sea of the Marche, already close to 10 dollars per barrel,” – said Biryukov.
