Russian Urals Oil Sells at Near-Record Discounts in India, According to Sources

Russian February Urals crude oil shipments are being traded at near-record discounts compared to dated Brent in Indian ports, following increased pressure from Western sanctions, according to two sources.

For February delivery, Urals oil cargoes are trading at discounts of $10 per barrel against dated Brent in Indian ports, which is an increase of $3-5 per barrel from estimates for shipments loading in the autumn months last year, and is close to the largest discount on record, the sources noted.

In late 2025, the US implemented its strictest sanctions on Russia’s energy sector, targeting major oil companies like Lukoil and Rosneft. The US also imposed an additional 25% import tariff on Indian goods, linking it to New Delhi’s ongoing imports of Russian oil.
On Friday, US Treasury Secretary Scott Bessent indicated that the additional 25% tariffs on India might be lifted following a significant decrease in Indian imports of Russian oil.

Over the past two months, New Delhi has reduced its oil imports from Moscow, as sanctions have redirected more Russian oil to China.

The substantial discount being offered could attract more Indian refiners and facilitate additional sales, one trader mentioned, but indicated that New Delhi is also exploring alternatives to Urals due to Western pressure.

Indian Oil Corp, the leading refiner in the country, has secured 7 million barrels of oil, including purchases from Brazil’s Petrobras, for March delivery to substitute Russian oil, as per two trade sources informed about the situation.

Since 2023, Urals crude has remained a primary feedstock for Indian refiners after Moscow redirected its oil flows to Asia following the EU’s restrictions on Russian energy.