OIL: Russian Urals Discount for India Holds Steady in July

Russian Urals oil prices for cargoes loading in July for Indian ports are in line with June, according to Reuters sources.

• Prices were supported by healthy demand for the grade and with exports expected to decline next month, despite rising risks of sanctions.
• Russian prices have little room to rise after recent EU sanctions on tankers involved in transporting Russia oil and on shipping firm Sovcomflot.
• Urals cargoes loading in July were sold at a $3.50/bbl discount to dated Brent on a delivered ex-ship (DES) basis in Indian ports, sources said.
• Russia is expected to reduce exports from western ports to 1.5mbpd in July from 2mbpd in June as crude processing at refineries recovers following maintenance.
• India’s state-owned refineries are in talks with Russia to secure term deals for crude supplies. However, the lack of price agreement is holding up the discussions with more significant discounts on Russian barrels now seemingly gone.