According to information from a Kommersant source, Russia has managed to reduce the discount for Russian prime quality Ural oil to $5 per barrel at Indian ports, thanks to the reduction in oil exports. However, the Urals will remain the most accessible of all non-permitted oil types for India. Although Indian officials have previously indicated their intention to reduce reliance on Russian oil, the country is likely to remain the largest consumer of this hydrocarbon for Russia’s sea shipments.
The Kpler review notes that although the Urals’ discounts for Brent have dropped to $4-$5 a barrel when delivered to the port, the Urals will retain their competitive advantage among medium grades in the Indian market. Following the imposition of EU NWO sanctions on Russia in Ukraine, India has become the largest consumer of Russia’s offshore oil shipments, receiving them on terms of delivery to the port of destination (DES). China remains the second largest importer of shipping from Russia.
India and China have increased their purchases of Russian oil this year due to lower cost due to sanctions cuts. At the beginning of the year, the discount of the Urals to Brent on a CIF basis was about $ 40 per barrel. In March, Rosneft announced an increase in supply to the IOC of India. In addition, Rosneft owns more than 49% of the Indian refinery Nayara Energy, which supplies oil from Russia.
Previously recognizedWhen oil prices drop to $50 a barrel.