The trade mark of oil is a concept that arose as a result of the heterogeneity of raw materials and significant differences in fuel in terms of quality. This led to the division of the world's "black gold" into grades. The type of product will depend on the concentration of sulfur, on the presence of various groups of alkanes and impurities. The brand also depends on the mineral deposit. A variety of grades of oil make it possible to optimize the process of fuel trading, to form a balance of supply and demand. History has identified the Brent brand as one of the main markers that influences the formation of fuel prices around the world. This is determined by the reference quality of the latter. Russian oil, the brand of which, although not so in demand, is no less known on the world market, is Urals.
Russian oil grades
Today it is customary to distinguish only five grades of oil in Russia:
- Urals.
- Siberian Light.
- Sokol.
- ESPO.
- REBCO (Russian Export Blend Crude Oil).
They are all essentialdiffer in quality and composition, in the presence of impurities. The most traded fuel is the Urals brand. Its purchase and sale is actively carried out on the domestic FORTS market and on the RTS exchange. All other brands are less in demand due to low quality, but there is a demand for them, albeit a minimal one. On May 26, 2015, the price per barrel of "black gold" of this brand was 63.95 dollars. Finally, the long-awaited rollback began on the market, which, after the catastrophic decline in the cost of raw materials to almost $45 in February, many market participants were waiting for.
Urals oil grade
The fuel called Urals, or Urals, is high-sulphur Russian oil, the grade of which includes fuel from the Khanty-Mansiysk Autonomous Okrug and from Tatarstan. Heavy and sour Ural oil is combined with light West Siberian oil. The main producers of raw materials are Rosneft and Lukoil, Surgutneftegaz and Gazprom Neft, TNK-BP and Tatneft. The price per barrel is formed by discounting the cost of the Brent brand. The difference is only a few dollars. Recently, the government of the country has been making efforts to improve the quality of raw materials by eliminating Tatarstan fuel from it. In the Republic of Tatarstan, it is planned to equip renovated oil refineries in order to make gasoline from local "black gold". The Russian government has many promising programs to improve this brand of raw materials.
Siberian Light grade oil
Russian oil, the brand of which is Siberian Light, belongs to the category of raw materials of relatively high quality and is distinguished by a sulfur concentration of 0.57%. The main fuel producers are Rosneft and Lukoil, Surgutneftegaz and Gazprom Neft, and TNK-BP. Deliveries of oil products are carried out through the port on the territory of Tuapse. The brand as an independent fuel is sold in small quantities, and the main part of the raw material in the main pipelines acts as the basis for Urals.
Rebco oil grade
Russian oil Rebco is traded on the New York Mercantile Exchange (Nymex). The name provides for the delivery of "Urals FOB Primorsk", which is formed in the pipelines of "Transneft". The fuel is formed by combining oil from the Ural-Volga region and low-sulfur fuel from the western part of Siberia. An interesting fact is that, in terms of its characteristics, this grade of raw material is completely identical to the Urals grade considered above. Many experts of the world oil market call this brand an unsuccessful and unrealized project. She never managed to become a full-fledged participant in the international market. In history, namely in 2006, there was a situation when a very limited amount of raw materials was bought at the auction, which ultimately was not delivered to buyers for technical reasons.
Sokol oil grade
This Russian oil is the Sokol brand, or Sokol, a fuel that is being developed as part of the project"Sakhalin-1". Export of raw materials is carried out through the port of De-Kastri, located in the Khabarovsk Territory. The density of oil corresponds to 37.9 degrees, and the sulfur content remains at 0.23%. Back in 2007, the oil product developer had high hopes for this brand, planning to make it dominant in the Asian region. The problem arose when, in contrast to the high quality of the fuel, the lack of a product on the world market and its production in a rather limited amount were put. Interestingly, the raw material is trading at an order of magnitude higher than the products of competing and benchmark brands Oman and Dubai.
ESPO oil grade
This Russian oil - ESPO brand - is East Siberian oil. It is supplied via the Eastern Siberia - Pacific Ocean pipeline. At the moment, the cost of a brand of oil is fully tied to the price of Dubai Crude. The density of the oil product is equal to 34.8 degrees, and the sulfur concentration corresponds to the level of 0.62%. Many experts say that this Russian oil has a promising future. In order to classify it as a marker, you only need time. According to preliminary studies, it turned out that the ESPO brand is an order of magnitude better than the domestic Urals brand. Previously existing problems with chlorine impurities in raw materials are now completely resolved. The fate of ESPO depends solely on the development of ESPO and enterprises that develop fuels in the regions. At the moment, the brand is popular and is gradually ousting it from the market.its Far Eastern competitors.
What determines the price of Russian oil?
Urals is a weighted crude that is of medium quality due to its high sulfur content. The diverse chemical nature of the product is due to different regions of development. The price of Russian Urals oil is formed on the basis of existing supply and demand. The Brent brand leaves an imprint on the cost of the product, but a certain discount is not taken into account in the calculations. Having mediocre characteristics, raw materials compete with light fuels. Fuel is traded on the domestic market, and the asset itself is considered to be low-liquid. Only a few supply contracts are concluded daily. As for futures, they are more of a settlement structure and are used to change the cost of Russian oil and carry out speculative activities. Trading on the New York Mercantile Exchange plays a significant role in price formation. Regardless of the brand of Russian oil, it will rise in price as the world countries develop economically. The growth in production leads to an increase in resource costs, which will generate demand and stimulate prices for petroleum products. The oil market and its pricing policy are closely related to the situation in the world, and Russian oil is no exception to the general rules in this matter.
