Soviet Union Raises Price of Urals Crude

The Soviet Union raised the price of its Urals blend crude by between 40 and 50 cents a barrel, while prices elsewhere fell, oil industry sources said Monday.

The increase is the fourth this month by the Soviets, who, analysts said, apparently were responding to price advances in the spot market in recent weeks. This puts Urals blend crude at about $27 a barrel. The new price is to take effect Sept. 16.

Meanwhile, prices of crude sold on the non-contract, or spot, market declined Monday in reaction to a published report that Saudi Arabia might lower its official prices.

Petroleum Intelligence Weekly, a trade newsletter, said the Saudis would offer discounts unless the 12 other members of the Organization of Petroleum Exporting Countries halted their price-cutting schemes.

Urals crude traded at $26.80 a barrel on the spot market, below the new official price, according to Telerate Energy Service. Future prices for October delivery dropped 11 cents a barrel to $27.64 on the New York Mercantile Exchange.

Saudi Arabia has kept its production low in a frustrating attempt to maintain the official OPEC price of $28 a barrel. Saudi Arabia sold 2.3 million barrels a day last month, below its self-imposed quota of 4.35 million barrels a day. In contrast, other OPEC members are producing more than allowed under the voluntary production quotas.

The newsletter said the Saudis have discussed price discounts with international oil companies since June in an effort to restore their severely eroded market share. Exxon, Texaco and Mobil, partners in Aramco, declined comment Monday, but Chevron, the fourth partner, said it “received an inquiry by Aramco, and we are interested in what the proposals might be.”