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Russian Ural Discounts for Indian Buyers at Post-War Lows

OIL

Russian oil sellers are offering their lowest discounts for their oil for Indian buyers than at any point since the invasion of Ukraine according to Reuters sources.

  • Urals oil for delivery to Indian refiners has sold at discounts of $3 to $3.50/bbl to the global Brent crude benchmark this month, according to five traders and Indian refining officials.
  • Sellers had previously had to offer larger discounts (up to $20/bbl) to encourage Indian buyers to risk importing sanctioned barrels.
  • Over 630 tankers are currently involved in shipping Russian oil and sanctioned Iranian crude according to Lloyd's List Intelligence, adding extra freight support.
  • Freight costs for shipping Russian oil to India have declined to about $5-5.5 million in June – close to pre-war levels, allowing Russian sells to charge more for the oil.

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