Urals oil is the main export grade of Russian hydrocarbon feedstocks. The country's budget directly depends on the oil of this brand, since it is calculated based on the cost of raw materials according to current forecasts of economists.
General information
Urals oil is a mixture of two types of "black gold" - West Siberian and Volga. Varieties are mixed in the pipelines of Transneft. Oil of this brand has a density of 30-32 API and contains an admixture of sulfur - about 1.3%.
The producers of this grade of oil are 5 leading Russian companies:
- Gazpromneft.
- Tatneft.
- Surgutneftegas.
- Lukoil.
- Rosneft.
Manufacturers are interested in improving the quality of "black gold" and are constantly working in this area. The Tatneft refinery, where the raw materials will be purified from sulfur, is already at the final stage of construction.
Hydrocarbons are exported through the Druzhba pipeline and the Black Sea port in Novorossiysk. In the near future, Gazprom plans to commission a pipeline through which oil of this brand will be exported to the Asian region.
Since 2009, Urals began trading as an independent oil on the commodity exchanges of New York (NYMEX) and Moscow (MICEX).
How the price of Urals oil is calculated
The cost of oil of a particular brand depends on its properties. Urals oil is a heavy product with a high sulfur content and a low concentration of gasoline and gas oil inclusions. The value of the Urals variety is tied to the Brent marker. It is determined at a discount to the cost of Brent.
However, when compared with the American WTI, Russian Urals oil is of acceptable quality.
Futures contracts
Urals oil is the most extracted type of energy carrier in the whole world. Before the introduction of futures contracts, consumers and producers of this type of oil had great market risks. As practice shows, futures are an excellent component of the investment portfolio due to low risks and non-linear returns.
After the appearance of futures, Russian producers of Urals have achieved maintaining the cost of raw materials at a decent level. This is also evidenced by the fact that its price sometimes rises above the price of marker Brent. Also, futures traded on the MICEX make it possible to carry out all operations with them within the framework of Russian legislation for rubles.
The strategic energy carrier of Russia is Urals oil. Its price is directly tied to the value of the marker grade of North Sea Brent oil and currently does not exceed $ 32 per barrel. Not so long ago, Urals futures contracts were put into circulation. This made it possible for investors to invest in a highly efficient instrument where the underlying asset is black gold. Reserves of Russian oil are very significant. Over the years, the quality of Urals will certainly improve, since the government is interested in high prices for domestic hydrocarbon raw materials.