The increase in the discount is a consequence of heightened sanctions risks at the end of October, when the United States imposed restrictions on two of the largest Russian oil companies. Overall, this is standard for the oil market: the Urals discount to Brent typically widens in the first weeks and months following the tightening of sanctions. This was the case, for example, in the second quarter of 2022, when, amid the European Union's decision to impose an embargo on maritime oil supplies from Russia, the discount temporarily exceeded $30 per barrel. The ESPO oil is closer in its physicochemical characteristics to Brent and other low-sulfur varieties, so even before 2022, ESPO oil was generally sold on the spot market at a premium to Urals. Experience shows that investors gradually acclimatize to the new level of sanctions risks over time, suggesting that the discount will begin to narrow no later than the beginning of 2026. Source: Vedomosti