Latest news with #UralsCrude
Yahoo
14-07-2025
- Business
- Yahoo
Russia's Cheap Oil Ride to India Hits a Fragile Plateau
Freight rates for Russian Urals crude from Baltic ports to India have dipped again in July, falling to $5.0–$5.3 million per Aframax shipment—down from $5.5–$5.7 million in June—as more tankers become available. But traders warn: don't get too comfortable. A new round of EU sanctions and a pending statement from Donald Trump could send rates—and risks—right back up. The drop in shipping costs reflects a brief window of flexibility. With Urals crude still priced under the $60 per barrel price cap, Western tankers and insurers are once again in play, keeping costs lower and logistics smoother. It's a familiar pattern: every time Urals dips under the cap, freight rates ease. Back in April, they fell to $6 million per voyage on average. Few expect the trend to last. The EU is finalizing its 18th sanctions package, which may lower the cap to $45. If that happens, or if Trump signals a tougher U.S. line on Moscow, Western tanker availability could diminish again, driving rates up and tightening access. Meanwhile, India—the top buyer of Russian seaborne crude—is already feeling the squeeze. The once-generous Urals discount has shrunk to just $1.70–$2 per barrel below Brent, the narrowest since the war began. Combined with refinery maintenance in Russia and locked-in term deals like Rosneft's with Reliance, Indian refiners are struggling to secure August cargoes. Some are eyeing alternatives like UAE Murban or U.S. WTI. Freight costs are still well above the pre-sanctions norm of $4.7–$4.9 million, a reminder that even when Russia complies with the cap, the discount pipeline isn't what it used to be. With policy pressure building and markets frozen in anticipation, this moment of relative calm could be the last breath before freight volatility returns with a vengeance. By Julianne Geiger for More Top Reads From this article on
Zawya
04-07-2025
- Business
- Zawya
Discount on Russian Urals oil shipped to India is smallest since 2022, traders say
Discounts for Russia's flagship Urals crude oil for delivery to Indian ports in August shrank to their narrowest levels since 2022 amid high demand and shrinking spot supply, three traders in the grade's market said on Friday. Narrowing discounts and lower supply of spot Russian barrels will push Indian refiners to look for alternative oil like United Arab Emirates' Murban or U.S. West Texas Intermediate (WTI) grades, traders said. The narrowing discount shows how Moscow is managing to keep its oil sales up despite Western sanctions, while its discounted oil is getting more expensive than before, though still cheaper than alternatives. Spot discounts for Urals crude narrowed to $1.70-2 per barrel to dated Brent on delivery ex-ship (DES) basis on average for cargoes arriving in India in August, from $2 to $2.50 per barrel to dated Brent on DES basis in July, the traders said. That is the narrowest discount for Urals oil cargoes to dated Brent in Indian ports since the Ukraine war broke out in 2022. Meanwhile, as the Russian oil grade is traded against Brent benchmark, its outright price has been mostly below the West's $60 per barrel price cap since April this year, allowing Western companies to provide shipping and insurance service for the barrels. Urals oil prices are supported by high demand in India and Turkey, the two largest buyers of the grade, traders said. Turkey's imports of Russia's Urals crude rose in June to their highest level since May 2024 on healthy refinery margins and seasonal demand for motor fuels, LSEG data showed. Meanwhile, Urals oil loadings are set to decline in July from June amid higher refinery runs in Russia. Russian oil supply is also set to decline in August amid a planned shutdown for maintenance of output on the Sakhalin-1 project that exports Sokol oil. India has been the largest buyer of Russian seaborne crude after Moscow diverted its energy supply away from the European Union, which imposed a ban late in 2022. Several Indian refiners that normally buy Russian oil on the spot market are not getting enough Urals oil for delivery in August, the sources said. India is exploring building three new strategic oil reserves to boost its emergency stockpile and strengthen energy security. Large volumes of Russian Urals oil are shipped to India under the deal between the country's largest private refiner, Reliance Industries, and Russian oil giant Rosneft last year, limiting the crude offered in the spot market, traders said.
Russia Today
26-06-2025
- Business
- Russia Today
Indian refineries ramp up Russian crude purchases
India has purchased 80% of Russia's seaborne Urals crude exports this year, with two private refineries increasingly buying more of this variety, Bloomberg reported, citing data analytics provider Kpler. Indian conglomerate Reliance Industries and Nayara Energy have bought 45% of the Urals crude imported into the country. The South Asian nation has bought 231 million barrels of Urals crude this year, according to the report. Both Reliance and Nayara's Russian oil purchases witnessed a significant jump in 2025, Bloomberg added. Reliance Group has become the world's largest buyer of Russian oil this year, buying 77 million barrels of Urals crude in 2025, according to the report. The group, which is owned by Indian billionaire Mukesh Ambani, signed a ten-year deal with Rosneft in December 2024 for 500,000 barrels of crude per day (bpd), worth around $13 billion annually, marking the largest energy deal between Moscow and New Delhi. Nayara has part-Russian ownership. In 2017, Rosneft Group led a consortium to buy a 98% stake in Essar Oil for $12.9 billion. The company was later restructured as Nayara Energy, with Rosneft keeping a 49.13% stake. Around 72% of its oil imports consisted of Russian crude, a significant increase from 27% just three years ago, Bloomberg said. Russia has been India's largest oil supplier since the escalation of the Ukraine conflict in 2022. In May, India's imports of Russian crude oil reached around 1.8 million bpd, the highest level in ten months, Reuters reported, citing Kpler data. The surge in imports in May has helped Moscow solidify its position as a major oil supplier to the world's most populous country. Industry watchers attribute India's frenetic buying of Russian crude to the volatile situation in the Middle East. Tehran, which controls the Strait of Hormuz, a major oil shipping route which accounts for 20% of the global oil supply, threatened to close the waterway in the wake of the US attacks on three of its nuclear installations on Sunday. New Delhi has said it would be able to offset the effects of the Strait of Hormuz being closed off.
Bloomberg
19-06-2025
- Business
- Bloomberg
Russia Oil Revenue Dented by Strong Ruble as Global Prices Jump
Russia is barely benefiting from the recent surge in oil prices because of its strengthening currency, keeping the Kremlin's revenue under pressure. As hostilities between Iran and Israel lifted global oil prices, Russia's Urals crude rose to more than $60 a barrel on June 13, according to data from Argus Media Ltd. That meant it had recovered all but 10% of its losses since the start of the year.
Reuters
06-06-2025
- Business
- Reuters
Russian Urals oil to India sells at narrowest discounts since 2022, traders say
MOSCOW/NEW DELHI, June 6 (Reuters) - Discounts for Russian flagship Urals crude oil for delivery to Indian ports in July hit their narrowest levels since 2022 as spot supplies have tightened, four traders involved in the market said on Friday. Narrowing discounts and tight spot supplies are nudging Indian refiners to scout for alternatives through buying tenders. Spot discounts for Urals crude narrowed to $2.25 per barrel on average for cargoes arriving in India in July, from $2.70 to $3.10 per barrel to dated Brent on delivery ex-ship (DES) basis in the previous month, the sources said. That is the narrowest discount for Urals oil cargoes sold to India since the Ukraine war broke out in 2022. India became the largest buyer of Russian seaborne crude after Moscow diverted its energy supply away from the European Union which imposed a ban. Some Indian refiners which do not have long-term supply agreements with Russian oil companies are not getting enough Urals oil in July, the sources said. India's largest private refiner, Reliance Industries ( opens new tab, locked in a term supply contract with Russian oil giant Rosneft ( opens new tab last year, which reduced the availability of Urals in the spot market, they said. Russian oil traders cited higher demand for the grade from refiners in Turkey, which has recently increased buying, boosting competition with Indian refiners over the supply. Turkey's largest oil refiner, Tupras, resumed buying Urals in April after stopping earlier this year, because of tougher U.S. sanctions on Moscow. Two of the traders also said improving refining margins globally also helped boost Russian oil demand as refiners are eager to increase crude runs. India remains the biggest buyer of Russian Urals oil by sea, with imports hitting a 10-month high in May.
