Zabotkin: We are operating on assumption that expanded discount on Russian oil is temporary, as in 2023

MOSCOW. Nov 26 (Interfax) - The recent expansion in the discount on Urals crude against Brent amid an increase in pressure from sanctions is a temporary phenomenon and the Central Bank of Russia is not expecting it to pose a significant risk to the forecast for next year, Deputy CBR Governor Alexei Zabotkin said.

"The current prices of export oil are significantly lower than the price included in the forecast for next year. The discount has now expanded again; the maximum discount was in late 2022 and early 2023, and now, the figure is probably close to what was observed during that period. But, as you can see, as our exporters adapted their logistics routes and relationships with buyers to the new reality, this discount narrowed noticeably by the middle of 2023," he said in his lecture at the Moscow State University Economics Faculty.

"We are operating on the assumption that the expanded discount is a temporary phenomenon and we do not expect it to pose a huge risk to the assumptions of the forecast," Zabotkin said.

He also said that "in terms of global oil demand, the risks in terms of which price is forecast for Brent crude may have been moved downwards somewhat due to the view of the supply-demand balance on the oil market".