Urals Trade at Widest Discount Since 2023 as Brent Jumps After Hormuz Crisis
Mar 4th 2026
Despite a marketwide oil rally after attacks that disrupted the Strait of Hormuz, Russia’s Urals grade traded about $30.9 a barrel below Dated Brent on March 3, the biggest discount since April 2023, driven by competition from other discounted crude and large tanker storage volumes.
- Urals averaged about $30.9 a barrel below Dated Brent on March 3, the widest gap since April 2023.
- Brent rose on regional escalation after US and Israeli strikes on Iran and attacks that effectively closed the Strait of Hormuz.
- Urals prices rose in nominal terms, with Primorsk at $54.82 a barrel and Novorossiysk at $52.97, but discounts stayed large.
- Buyers still demand heavy incentives because Russian barrels face competition from other discounted, sanctions-hit crude including Iranian oil.
- About 140 million barrels are stored at sea, reflecting recent piles of unsold volumes.
- Russia built its 2026 budget on an average Urals price of $59 a barrel, so current levels could provide short term relief for oil tax revenues.