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Sources say that the Russian Urals oil is trading at a discount close to the largest since 2022, in India

Two sources reported that Russian crude oil cargoes dated February Urals traded in Indian ports at discounts close to the largest since 2022 compared with dated Brent, amid increased pressure from Western sanctions.

The two sources claimed that the 'cargoes' of Urals oil to be supplied in February will trade at a discount of $10 per barrel compared to Brent for delivery to Indian ports. This is a rise from the estimated cargoes loaded in the fall months last year by $3-5 per barrel and close to the largest discount ever recorded.

The U.S. targeted oil majors Lukoil & Rosneft in late '2025, imposing the toughest sanctions yet on Russia's Energy Sector. The U.S. also imposed 25% additional import tariffs on Indian products, which it attributed to New Delhi's continued importing of Russian oil.

The U.S. Treasury secretary Scott?Bessent signaled on Friday that the additional 25% tariffs could be removed from India as a result of a dramatic reduction in Indian oil imports.

New Delhi has cut its oil imports in recent months from Moscow, as sanctions have pushed more Russian barrels towards China.

One of the traders stated that a wide discount may help attract more Indian refiners, and place?more barrels, with them. However, he added?that New Delhi, under Western pressure, is looking for alternatives.

Two sources familiar with the issue said that Indian Oil Corp., the country's largest refiner, purchased 7 million barrels from Brazil's Petrobras for loading in March to replace Russian oil.

Urals crude is a major feedstock for Indian refiners, since 2023 when Moscow diverted flows to Asia following the European Union's curtailment of Russian energy consumption. (Reporting and Editing by Jan Harvey).

(source: Reuters)