Shell Plc, Europe’s largest oil business, paid a record low price for a cargo of Russia’s flagship crude, highlighting the company’s resolve to continue buying supplies from the country notwithstanding its invasion of Ukraine. The shipment was purchased from Trafigura Group for around $28.50 a barrel less than Dated Brent, a global benchmark for physical oil trades. The freight was purchased as a delivery item.
Shell continues to purchase Russian oil and gas. The corporation is in talks with government officials and will abide by any changes in regulations. Shell said it is buying Russian supplies to sustain fuel delivery to its customers in a series of tweets on Friday, and that it will cut purchases as alternative crude becomes available.
Since Russia’s invasion of Ukraine, this is the first trade in a window managed by S&P Global Platts. While it emphasises the huge discounts Russia would have to sell its oil at, it is also the first hint that companies that rely on Urals crude will still be willing buyers. The Russian oil company Rosneft is attempting to execute a massive tender to sell petroleum. From April to October, the business is vying for the sale of up to 83 million barrels of Urals. Shell’s purchase has nothing to do with that, but it will provide insight into the price of Russian oil after the invasion.