Russia’s flagship Ural crude oil is being offered to Indian refineries at the cheapest price in at least two years, after US sanctions on leading producers Rosneft PJSC and Lukoil PJSC upended trade.
According to sources familiar with the matter, the price of Ural oil for Indian refiners fell to as much as $7 per barrel below Brent. The sources stated the offer was for cargoes loading in December and arriving in January.
Most Indian refineries had not placed orders for incoming Russian crude oil after the sanctions on Rosneft and Lukoil came into effect last week. However, in recent days, the attitude of Indian refineries has changed due to the cheaper Ural oil prices, and some processors are now open to the idea of purchasing Russian oil from sellers not subject to sanctions.
Prior to the sanctions on Rosneft and Lukoil, the discount for Ural oil was around $3 per barrel. Since the US sanctions, which are in addition to similar restrictions on Gazprom Neft PJSC and Surgutneftegas PJSC, Indian refineries have purchased more crude oil from other regions, including the Middle East.
Ural oil is shipped from Russia’s western ports.
Source: Bloomberght
