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LIVE COVERAGE
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Mar 4, 2022 at 1:13 pm ET


SHELL BUYS RUSSIAN OIL AT BARGAIN PRICE

By Joe Wallace and Anna Hirtenstein

Shell bought 100,000 metric tons of Russia’s flagship Urals crude on Friday, say
people familiar with the transaction.Peter Boer/Bloomberg News

Shell PLC has snapped up a cargo of Russian crude at a bargain price, ending a
self-imposed embargo on Russian oil by the international energy industry.

Shell bought 100,000 metric tons of Russia’s flagship Urals crude on Friday,
according to people familiar with the transaction. It paid $28.50 a barrel below
the price of international benchmark Brent crude, the widest discount on record.

London-listed Shell bought the crude from Trafigura Group Pte. Ltd., one of the
biggest commodity traders and largest exporters of Russian oil. Trafigura had
failed to sell the cargo this week before drawing a bid from Shell after
dropping the price to a massive discount.

As Western oil-and-gas companies this week raced to distance themselves from
Russia in the wake of the invasion of Ukraine, Shell said this week it would
exit its joint ventures with Russian energy giant Gazprom PJSC. A person
familiar with the company’s trading strategy said Shell was still buying Russian
oil to plug into refiners and petrochemical plants while it looked for
alternative sources.

The U.S. and its allies left energy out of the sanctions imposed on Moscow in
response to the invasion. However, refiners went further, shunning Russian crude
as they struggled to get funding and ships to export Russian oil.

Self-sanctioning has taken a chunk out of global supplies, pushing prices for
international benchmark Brent up to $113.80 a barrel. Traders say it is causing
a backup in Russia’s energy supply chain, prompting refiners to cut back
production.

Shell PLCuk:shel(U.K.: London)
£1,833.40 GBP-96.80-5.02%▼
VIEW LIVE COVERAGE FEED
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THE RUSSIA-UKRAINE WAR: LATEST NEWS AND LIVE UPDATES

Last Updated: Mar 6, 2022 at 3:44 am ET


FULL COVERAGE OF RUSSIA'S INVASION OF UKRAINE, FROM THE WALL STREET JOURNAL

--------------------------------------------------------------------------------

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