The strategic natural raw materials of the Russian Federation - the oil "Urals"

Oil "Urals" is the main export grade of Russian hydrocarbon raw materials. The country's budget is directly dependent on the oil of this brand, as it is calculated based on the cost of raw materials according to current forecasts of economists.

General information

Oil "Urals" is a mixture of two types of "black gold" - West Siberian and Volga. Mixing of varieties occurs in the pipelines of the enterprise "Transneft". The oil of this brand has a density of 30-32 API and contains an admixture of sulfur - about 1.3%.

The enterprises-producers of this grade of oil are 5 leading Russian companies:

• Gazpromneft.
• Tatneft.
• Surgutneftegaz.
• Lukoil.
• Rosneft.

Producers are interested in improving the quality of "black gold" and are constantly working in this field. The processing plant of Tatneft, where raw materials will be purged of sulfur, is already at the final stage of construction.

The hydrocarbon raw materials are exported via the Druzhba oil pipeline and the Black Sea port in Novorossiysk. In the near future, Gazprom intends to put into operation a pipeline, through which the oil of this brand will be exported to the Asian region.

Since 2009, Urals has started to trade as an independent grade of oil on the commodity exchanges of New York (NYMEX) and Moscow (MICEX).

How Urals oil is calculated

The cost of oil of a brand depends on its properties. Oil grade "Urals" - a heavy product with a high sulfur content and a low concentration of gasoline and gas oil inclusions. The price of Urals is tied to marker Brent. It is determined at a discount to the cost of Brent.

However, when compared with the American WTI, Russian oil "Urals" has acceptable quality.

Futures contracts

Oil "Urals" is the most extracted type of energy carrier in the world. Prior to the introduction of futures contracts, consumers and producers of this type of oil had large market risks. As practice shows, futures are an excellent component of the investment portfolio due to small risks and non-linear returns.

After the appearance of futures, Russian producers of Urals have achieved the maintenance of the cost of raw materials at a decent level. This is evidenced by the fact that its price sometimes rises above the price of marker Brent. Also, futures with circulation on the MICEX give the opportunity to make all transactions with them within the framework of Russian law for rubles.

The strategic energy carrier of Russia is Urals crude oil. Its price is directly tied to the value of the marker grade of North Sea oil Brent and currently does not exceed $ 32 per barrel. Not so long ago, the futures contracts Urals were introduced into circulation. This allowed investors to invest in a highly efficient tool, where the underlying asset is "black gold". The reserves of Russian oil are very significant. Over the years, the quality of "Urals" will certainly improve, as the government is interested in high prices for domestic hydrocarbon raw materials.