Thursday, February 24, 2022

Financial Wrap-Up On Russia

I showed the first two things in class, the third one is new.

The ruble-dollar exchange rate has dropped slightly since class to 86 to 1. That's still almost 10% worse than a few days ago.

The price of CDS's for Russian bonds continues to climb. It's up to 343 now.

Russia is offering discounts on oil of about $10/barrel. Internationally, the price of of crude oil is up to as much as  $104/barrel. Russia exports 2 grades of crude oil: higher quality SOKOL (similar to oil from Texas that's used as a standard), and somewhat lower quality ESPO. While price reports are delayed, current prices for those are 101 and 97. Prices are usually quoted at time of delivery to some (often remote) location. American crude oil prices are lower, because it usually isn't being shipped very far.

Keep in mind that these are all spot prices, which vary by the second.

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