Global Supplier Switch: Russian Cheap Oil No Longer India's Bestseller

July 5 2025 345 667 4

The price gap that once made Russian Urals crude the main feedstock for Indian refineries is rapidly narrowing. Traders say the discount on Urals crude for delivery to India in August has narrowed to just $1,70-$2 a barrel over Brent, the tightest spread since 2022, OilPrice reports. The Russian crude is no longer the best-selling commodity it was for more than two and a half years.

This discount is lower than the $2-$2,50 in July and significantly lower than the huge discounts India has been receiving throughout 2023 and early 2024. As experts explain, the reason for this phenomenon is high demand from India and Turkey, reduced availability of Western feedstock on the spot market and a drop in supplies from Russia due to the increase in work of domestic refineries, as well as the upcoming technical service on the Sakhalin-1 project.

For Indian oil refiners economic the math is changing. Spot Urals crude is still cheaper than other grades, but the advantage is fading. Some refineries are already looking at alternatives such as UAE Murban or American WTI, grades that previously lost out to Russian barrels at deep discounts.

The narrowing spread also shows how Russia is still maintaining, albeit barely, shipping volumes despite sanctions, keeping Urals prices just below the Western price cap of $60 a barrel.

But the export squeeze is real. Several Indian refineries are reported to have been unable to supply Urals for August. This is partly due to forward deals: Rosneft’s deal with Reliance Industries means that large volumes are already contracted and there is less crude on the spot market.

India, currently the largest buyer of Russian oil by sea, is even considering creating three new strategic reserves to bolster energy security, a move that would underscore its recognition that Russian imports cannot remain cheap or plentiful forever.

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Yuri L

+3

5 July 2025 16: 24

Something is unclear. We sell oil to India with a "small" discount (and it looks like everything is within the sanctions 60 dollars), and without taking into account the increased costs of logistics through the "gray fleet". But the rupees received from the sale, we can only ... invest back into the Indian economy in the expectation of receiving a small profit from joint ventures in ... 100 years. Well, we can still convert a little through the Arabs, and in each case we need to get a special decision from the National Bank of India (alas, the rupee is not convertible). You can also buy a lot of Indian tea and Tata cars, which, with a purchase price in India of no more than 600 thousand rubles (they are all poor there), will cost us under the same 3 million rubles (the Russian is rich, but it is not a fact that he will rush to buy them, here it seems that only Zhiguli will soon be administratively allowed to be bought, though at least for 5 million). Therefore, of course, the main and necessary thing that can be bought in India with the received money from oil sales is, of course, a herd of elephants. White ones. Hindi, Russian, bhai, bhai!!!!! Why did the Eastern merchant suddenly have problems, so brazenly robbing the unfortunate Russian Vanya? Were they scared of 500% of Graham?
twice-born

+2

5 July 2025 19: 04

"Normal", it turns out that we are still subordinate to the enemies and sell oil not above their price threshold! And as responsible individuals and experts promised us two and a half years ago, that this is temporary, and soon we will raise the price! So once again the question is posed for naive patriots, is this our government or is it anti-Russian?
etoyavsemprivet

+1

6 July 2025 01: 16

It's written in a complicated way, I didn't understand anything))). Who lay under whom?
Sergey Latyshev

0

6 July 2025 22: 11

Very confusing.
But right here there are articles - India refines our oil and sells gasoline and diesel fuel to NATO.
Profit for yourself. Fuel for the Armed Forces of Ukraine.
And it has been like this for several years.

Well, it’s a real “win”