Russian Urals Discounts Drive Lukoil to Seek Tax Relief from Moscow

Russian oil producer Lukoil has reportedly asked Moscow to revise the oil tax formula as discounts on Russian Urals crude widen beyond $20 per barrel, threatening producers’ profitability and potentially turning state support mechanisms into net payments to the budget. The deep discounts relative to global benchmarks such as Oil – Brent Crude and Oil – US Crude reflect higher shipping costs, limited access to Western insurance, and ongoing restrictions on Russian energy exports, increasing pressure on Russia’s largest private oil companies and underscoring the growing divergence between Russian export prices and international crude markets.

Over the past month, prices for Oil – US Crude have advanced about 7.7%, while Oil – Brent Crude has gained roughly 8.3%, highlighting a firming global crude backdrop even as Russian barrels trade at substantial discounts. From a short-term technical perspective, both benchmarks currently show a 1-day signal of Buy for US crude and Buy for Brent, suggesting near-term positive momentum; the contrast between rising global prices and discounted Russian exports may continue to shape different risk and return profiles across crude benchmarks. Investors can explore more updates, prices, and analysis across global markets at Commodities.