Russia May Lower Crude Export Duty as Much as 3Pct in May

Bloomberg reported that Russia, the world's biggest oil producer may reduce its export duty on most crude shipments by as much as 2.7% from May 1 on lower Urals prices.

According to Bloomberg calculations based on Finance Ministry data the standard duty may fall to USD 448.20 to USD 451.50 a metric ton or $61.15 to $61.60 a barrel. That compares with USD 460.70 a ton in April.

The discounted rate on some Eastern Siberian and Caspian Sea oil may fall in May to within a range of USD 232.10 to USD 234.60 a ton compared with USD 241.50 this month.

Mr Alexander Sakovich a Finance Ministry adviser said Russia bases the export duties on the average Urals crude price from the 15th day of one month to the 14th of the next. Urals, Russia's benchmark export blend may average USD 120.68 to USD 121.43 a barrel during this period. In the previous monitoring period the crude price averaged USD 123.53.

Mr Vladimir Putin Prime Minister must sign off on the levies before they take effect. The government lowered the crude tax rate applying a coefficient of 60% down from 65% and unified the duty on most refined products at 66% of that levy since October.

The duty for middle distillates and heavy products may grow to within a range from USD 295.80 to USD 298 a ton next month from USD 304 in April.