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
