The increase in discount reflects the heightened sanctions risks that emerged at the end of October, when the United States imposed restrictions on the two largest Russian oil companies. In general, this is a common occurrence in the oil market: the Urals discount to Brent typically widens in the weeks and months following the tightening of sanctions. This was notably the case in the second quarter of 2022, when the decision by European Union countries to impose an embargo on maritime oil deliveries from Russia temporarily pushed the discount above $30 per barrel. ESPO oil, being closer in physical and chemical characteristics to Brent and other low-sulphur varieties, has historically sold at a premium to Urals in the spot market even before 2022. Experience indicates that investors gradually acclimatise to the new level of sanctions risks over time; consequently, the discount is expected to begin narrowing no later than the beginning of 2026. Source: Vedomosti