Urals Oil Discounted as Russia Seeks to Compensate for India Losses
Russia is reducing the price of Urals crude oil in an attempt to partially offset the financial losses caused by India's exit from the market, The Gaze reports, citing the Foreign Intelligence Service of Ukraine.
Following a sharp decline in supplies to India, Moscow is attempting to redirect its oil exports by offering China Urals crude at a discount of approximately $1.50 per barrel compared to Brent.
Since July, Indian state-owned companies Indian Oil Corporation and Bharat Petroleum Corporation Limited have completely suspended purchases of Russian oil, replacing them with purchases of at least 22 million barrels from suppliers in the Middle East and the US for shipment in September–October.
It is reported that supplies from China are unable to fully compensate for the lost volumes of Russian oil, as Urals is not a key grade in the structure of Chinese imports due to the remoteness of Russian ports and high logistics costs.
In addition, Chinese state-owned companies are cautious about increasing purchases from Russia, fearing possible new sanctions from the US.
According to estimates of the Foreign Intelligence Service of Ukraine, in the near future, Russia will only be able to partially compensate for the decline in Indian demand through isolated contracts with Chinese and Asian buyers.
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