Russian Urals crude now costs more than Brent: What's going on
Russian Urals crude, which used to be the budget-friendly pick for Indian buyers, is now selling at a $4 to $5 premium over Brent after recent Middle East tensions shook up global oil supplies.
Just last month, Urals was actually cheaper by $10 to $13 per barrel, so this price flip is a big deal for India's energy market.
Prices of Urals and Brent
Urals crude was about $68.6 per barrel (FOB Primorsk) in early March, roughly a 50% increase from about $45.7, while Brent traded in the low-to-high $80s.
The gap between the two has shrunk fast, showing just how tight and unpredictable the oil market has become since late-February strikes on Iran.
What do experts say?
Even with higher prices, Indian refiners are sticking with Russian oil thanks to a 30-day US waiver allowing purchases of Russian cargoes already at sea.
J.P. Morgan expects India to maintain imports around 0.8 to 1 million barrels a day because it's still cheaper than American or Middle Eastern options overall.
If things calm down globally, J.P. Morgan expects Brent could average around $60 per barrel this year.
For now, everyone's watching closely.