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Sub-$60/bbl Urals to Support Indian Demand

OIL

A price fall below $60/bbl for Russian Urals this week will likley support higher Indian demand due to access to western insurance and shipping services.

  • Falling crude prices pushed Urals to around $56/bbl this week according to Argus assessments.
  • The price drop gives more availability for ships to move Russian oil to India, especially from shipowners in places like Greece.
  • India’s oil imports from Russia in November climbed 9.7% m/m to 1.74 mn bpd but remained below a peak of 2.15 mn bpd, set in May according to Kpler.
  • Indian buyers are also reported to be buying Venezuelan barrels since US sanctions have eased, mainly coming from private refiners but state refiners have also shown interest.

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