Argus changing method for calculating prices in Russian Urals crude

MOSCOW. Nov 11 (Interfax) - Argus is changing the method for calculating Russian Urals crude prices owing to the anticipated entry into force of the European Union embargo on purchasing oil from Russia, the pricing agency said in its "Urals pricing changing radically changing radically" note for clients.

Argus declined further comment.

Interfax sources in the oil industry note that Argus held consultations with Russian oil companies in order to work out the most appropriate approach to setting prices for Urals at European ports.

Interfax's sources explained that previously the agency, whose data is used to calculate tax payments for Russian fuel and energy companies analyzed the idea of halting the publication of Urals prices, though subsequently abandoned the idea. It was decided to form prices in a new way. They will be calculated as the cost of Urals oil at Russian ports of shipment plus the cost of delivery to European ports, including the price of freight, port dues, cargo insurance.

Argus on Thursday evening on its official website published the new methodology for determining prices for Russian Urals based on Rotterdam cif and August cif delivery. The policy went into effect on November 10.