Urals Crude Prices Soar Above $110/Barrel Amid Middle East Disruptions
Oil prices surged on Tuesday, pushing Urals crude to above $110 per barrel for the first time since April 2026. This significant increase in oil prices is a boost to Russia's budget revenues, which heavily rely on oil and gas income.
The higher oil prices are attributed to strong Brent prices and a rally in spot markets amid Middle East supply concerns. The premiums for Urals crude delivered to Indian ports jumped to $8 per barrel over dated Brent, the highest since May, due to lower supplies from Gulf producers linked to the Iran war.
Shipping industry sources reported that crude loadings at Saudi Arabia's Red Sea export hub of Yanbu had been suspended and Riyadh had cancelled some deliveries to European customers. This deepened concerns that disruptions along a key export route could persist for weeks, prompting refiners worldwide to seek additional crude supplies amid Middle East disruptions.
The rouble price of Russian oil used for tax calculations has exceeded the level assumed in the federal budget for most of this year, supported by higher global oil prices. This is despite the fact that Russia's 2026 federal budget assumes an oil price of $59 per barrel.