Finance
Russian oil prices soar though tanker costs eat into gains
Published by Global Banking & Finance Review®
Posted on March 10, 2026
2 min readLast updated: March 10, 2026
Quick Summary
Russian Urals crude prices have surged to around $76/bbl amid Middle East conflict and shipping disruptions, but rising tanker freight costs—nearly doubling to $22–23 million per voyage—are eroding exporters’ margins.
Russian Oil Prices Soar Amid Rising Tanker Costs and Global Tensions
Surging Russian Urals Oil Prices and the Impact of Global Events
Market Dynamics and Price Increases
March 10 (Reuters) - The price of Russian Urals oil, shunned by many buyers amid Ukraine-related sanctions, has surged on the war in Iran, though costs are also rising, traders said on Tuesday.
With tankers from top exporter Saudi Arabia effectively blocked by Iranian threats to Gulf shipping, attention has returned to Russia, the world's second-largest seller.
Urals crude from Russian ports was being offered at around $76 per barrel on Monday on a free on board (FOB) basis, Reuters data showed, up from $45 just two weeks ago.
The price of a Urals cargo loading from the Baltic Sea port of Primorsk has jumped to around $54 million this week from about $35 million in February, according to Reuters calculations.
Russian sellers faced near negative margins on exports earlier this year, traders said.
Global Sanctions and Shifting Trade Routes
Despite G7 and other efforts to cap Russian seaborne oil prices, Urals for delivery to Indian ports is now selling at a premium to benchmark Brent crude for the first time ever.
The United States last week granted Indian refiners a temporary waiver to resume imports of Russian crude already aboard tankers.
Rising Freight and Tanker Costs
Yet traders said Russian sellers also face sharply higher costs. They said several vessels were fixed at around $22-23 million from Russia's Baltic Sea ports to India amid a scarcity of the vessels.
That's nearly double rates seen in early February and up about $5-8 million from late last week.
From Russia's Black Sea port of Novorossiysk, which resumed loadings on Friday after recent drone damage, freight costs also rose above $20 million to India, traders said.
Broader Oil Market Trends
Brent oil surged to more than $119 a barrel on Monday to its highest since mid-2022 amid supply cuts by Saudi Arabia and other Gulf producers.
Prices pared gains after U.S. President Donald Trump predicted the war in the Middle East could end soon.
(Reporting by Reuters; editing by Guy Faulconbridge and Jason Neely)
Key Takeaways
- •Russian Urals crude has jumped from about $45 to $76 per barrel in two weeks, driven by disruptions near the Strait of Hormuz and Middle East geopolitical tensions (apnews.com)
- •.Freight costs from Baltic ports to India have soared to roughly $22–23 million per voyage amid vessel scarcity, nearly double early‑February levels (tradingview.com)
- •Urals crude now trades at a premium to Brent for Indian delivery—the first such occurrence—as the U.S. granted India a temporary waiver to resume Russian crude imports (apnews.com)
References
Frequently Asked Questions about Russian oil prices soar though tanker costs eat into gains
1Why have Russian oil prices increased recently?
Russian oil prices have surged due to increased demand amid Iran-related war and Gulf shipping threats, causing a shift in attention to Russian exports.
2How have tanker costs affected Russian oil export profits?
Rising tanker costs, nearly doubling in some cases, have significantly reduced the profit margins for Russian oil exporters despite higher crude prices.
3What role has India played in recent Russian oil sales?
Indian refiners received a temporary waiver from the U.S. to resume imports of Russian crude already aboard tankers, increasing demand for Russian oil.
4How are sanctions impacting Russian oil exports?
Sanctions and G7 price caps continue to challenge Russian exporters, but recent global tensions have driven up demand and prices for Urals crude.
5What effect did the Middle East conflict have on oil prices?
The war in Iran and supply cuts by Gulf producers pushed Brent oil prices to over $119 per barrel, with prices retreating after diplomatic comments.
