Russia offers deeper discounts on Urals crude to woo India
Russian Urals crude is now being sold to Indian buyers at a $3-4 per barrel discount to Brent for shipments in late September and October 2024—a bigger gap than last week's $2.50 and July's $1.
Russia is sweetening the deal to keep India as a top customer, even with US tariffs and sanctions in play.
Since the Ukraine war started in 2022, India has become Russia's biggest seaborne oil buyer.
What's driving the price drop?
Urals crude is now cheaper than US oil, which recently cost $3 more than Brent.
Indian refiners are still buying Russian oil despite criticism from the US.
Private companies are still buying barrels, though at a reduced pace, while state-run refiners are playing it safe due to sanction worries.
Plus, with Russian refineries processing less oil lately, there's more Urals available—so prices keep sliding.
What does this mean for Indian buyers?
The bigger discount makes Urals an even better deal for Indian buyers, helping them save money despite tricky global politics.
For Indian refiners juggling sanctions and supply issues, these lower prices offer some welcome relief right now.