The July Brent crude futures on the London ICE Futures exchange declined by about 3 percent, with the benchmark price slipping below $77 per barrel during the recent auction session, according to market data from the trading platform.
As of 17:09 Moscow time, the July Brent futures price had fallen 3.32 percent to $76.66 per barrel, dipping below the $77 mark for the first time since late March. In the same window, June WTI futures dropped by 3.62 percent to $72.94 per barrel, reflecting broad moves in the global oil complex amid shifting supply signals and demand expectations. These price actions indicate a period of trading volatility as market participants digest evolving macro factors, including sanctions developments, energy policy signals from major producers, and the evolving outlook for global economic growth. [Citation: Market Data Service]
Earlier policy discussions in April noted a Russian government proposal to begin calculating export duties on Urals export oil using a dual focus: the price of Urals alongside the prevailing Brent benchmark. The intent is to more accurately reflect market realities when determining the allowable discounts on Russian oil and to set the framework for fiscal measures starting from June 2023. This approach aims to harmonize export taxation with international price references and to mitigate distortions caused by wide price differentials. [Citation: Government Briefing]
During the latter part of February, the Federation Council expressed support for legislation designed to cap the Urals discount relative to Brent from April 1 onward. The measure is intended to influence oil taxation by anchoring the tax base to a defined price relationship between Urals and Brent, thereby reducing volatility in tax receipts and stabilizing fiscal planning for the oil sector. [Citation: Legislative Update]
On December 5, a cross-border pact involving the European Union, the G7 economies (including the United Kingdom, Germany, Italy, Canada, France, Japan, and the United States) and Australia came into effect. The agreement effectively positions a price reference around $60 per barrel for certain Russian oil transactions, aiming to align international price signals with sanctions regimes and policy goals of energy security and market stability. Market participants have since monitored how this threshold interacts with global supply dynamics and regional trading flows, particularly in markets sensitive to Russian oil allocations. [Citation: International Agreement Summary]