Russia triples oil discounts for India as demand weakens

Discounts for Russian Urals crude have widened to more than $10 a barrel against dated Brent in Indian ports, pressured by weaker refinery demand and ample alternative supplies.

Urals had traded at a premium to Brent in India and China – its main markets – between March and June, supported by supply ⁠disruptions linked to the conflict in the Middle East, Reuters reports.

That support has faded as producers in the Middle East and Iran restored exports, leaving Asian refiners with a wide range of supply options and cooling demand for Russian crude, the sources said.

Urals cargoes for August delivery to India have recently traded at discounts ⁠of $10 a barrel or more, close to their widest levels and similar to those seen before the Iran conflict, the sources said.

Weak buying from China as it increases oil ⁠purchases from the Middle East has also weighed on Urals prices, two of the sources said. China and India ⁠currently account for the bulk of Russia’s crude exports.

Russia has, meanwhile, increased Urals exports to record levels ⁠as domestic refining has fallen following Ukrainian drone attacks on refining infrastructure.

By Vafa Guliyeva