Russian Urals crude discounts exceed $10 per barrel in India, according to sources.

The discounts on Russian Urals crude have expanded to over $10 a barrel compared to dated Brent in Indian ports, influenced by reduced refinery demand and a plentiful supply of alternatives, according to three sources.

Urals had previously traded at a premium to Brent in India and China—its primary markets—from March to June, aided by supply disruptions related to the Middle East conflict.

This support has diminished as producers in the Middle East and Iran increased exports, providing Asian refiners with a broad array of supply options and reducing the demand for Russian crude, the sources noted.
Urals shipments for August delivery to India have recently been sold at discounts exceeding $10 a barrel, nearing the largest margins seen before the Iran conflict, the sources indicated.

Weak demand from China, which is ramping up oil imports from the Middle East, has also pressured Urals prices, two of the sources mentioned. Currently, China and India make up the majority of Russia’s crude exports.

Meanwhile, Russia has ramped up Urals exports to unprecedented levels as domestic refining has decreased following Ukrainian drone strikes on refining facilities.

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