In November, Russia is set to launch
test trading of its new domestic-produced benchmark oil. It is expected
to drive up the price for Russian oil and end its dependence on Brent
pricing. That may result in trading Russian oil in rubles.
The plan to create a Russian oil benchmark has been in the making
for several years. Currently, Russian-produced Urals and ESPO (crude
transported through the ESPO pipeline) is traded cheaper against Brent
due to the lack of a transparent pricing mechanism and guarantees
of delivery.
According to Russian officials, Russian benchmark crude would make domestic-produced oil grades more liquid and expensive.
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