President Cries For The Moon

Russian President Vladimir Putin said at the meeting with the Cabinet of Ministers that he was unsatisfied with the gap between the prices of Russian oil Urals and Brent crude, saying that he considered it to be ?unfair?.

Putin asked the head of the Ministry of trade and economic development German Gref to solve this question. Gref pledged to ?consider the question? this fall.

Analysts, astonished by the issue, suppose that the Russian government is not able to minimize the gap.
Mikhail Perfilov, an expert in international oil trade, says there are two basic factors of the difference in prices. ?First, this is a fraction composition. One can make more light oil products from Brent than from Urals, including high-quality gasolines, while more heavy oil products can be manufactured from Urals, gas oil and masut. The basket of oil products that can be produced from Brent is more expensive as a result, which determines prices on raw materials.?

?The second factor is the current situation. If consumer countries need more heavy oil products, Urals is more expensive,? Mr. Perfilov maintains.

?A barrel of Urals is $2 cheaper than that of Brent, but the gap has been widening recently mostly due to the rise in Russian oil supply.?

"One cannot bring up prices for Urals artificially. It is the market that determines them,? the expert concludes.