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Brent and Urals Oil Price Control Mechanisms

Author

Listed:
  • Yuliana Vladimirovna Solovieva

    (RUDN University, Moscow, Russian Federation.)

  • Maxim Vasilyevich Chernyaev

    (RUDN University, Moscow, Russian Federation.)

  • Nezhnikova Ekaterina Vladimirovna

    (RUDN University, Moscow, Russian Federation.)

Abstract

The article considers the main mechanisms for controlling the formation of oil prices, including Brent and Urals brands. Based on the analysis of trends in the oil market and their dynamics over the past decades, the authors identify factors affecting pricing in the oil market, different oil market price control systems, and their dynamics. Our results show that there is a substantial price gap in the world oil market between the Brent reference grade and the Urals crude grade, while the formation of the Urals brand price is opaque. Comparing the key characteristics of different systems of price control in the oil market, we revealed that under the influence of external and internal factors, the system of control over pricing in the oil market underwent significant changes throughout its existence. The authors conclude that at present, there are real prerequisites for the institutional correction of the global oil market in terms of strengthening the administrative levers of developed countries control over exchange and OTC pricing mechanisms.

Suggested Citation

  • Yuliana Vladimirovna Solovieva & Maxim Vasilyevich Chernyaev & Nezhnikova Ekaterina Vladimirovna, 2021. "Brent and Urals Oil Price Control Mechanisms," International Journal of Energy Economics and Policy, Econjournals, vol. 11(3), pages 571-577.
    • Handle: RePEc:eco:journ2:2021-03-69
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    oil market; Brent brand; Urals brand; oil price; pricing factors; pricing system; pricing control mechanism.;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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