Russian Urals oil is being offered to Indian refineries at the lowest price in at least two years after US sanctions against leading producers Rosneft and Lukoil destroyed the profitable trade.
This is reported by Ekonomichna Pravda with reference to Bloomberg.
According to Bloomberg sources, the discount on Urals oil for Indian refineries has increased to USD 7 per barrel compared to the price of Brent crude on delivery terms.
This offer applies to cargoes that will be loaded in December and arrive in January, the sources added.
Most Indian refineries have canceled orders for russian oil that was supposed to arrive after the imposition of sanctions against Rosneft and Lukoil, which practically put an end to the trade that flourished after russia's invasion of Ukraine.
Sources said that the mood at Indian refiners has changed in recent days due to cheaper prices for Urals crude, and some refiners are now willing to buy russian crude from sellers not subject to sanctions.
However, only about a fifth of the cargoes offered are from non-sanctioned entities.
Before the sanctions against Rosneft and Lukoil, the discount on Urals crude was about USD 3 per barrel.
Since the US sanctions, which come on top of similar restrictions on Gazprom Neft and Surgutneftegaz, Indian refiners have been buying more crude from other regions, including the Middle East.
As Ukrainian News Agency earlier reported, India's five largest refiners did not place any orders for russian crude in December this year.
Their caution may be related to the trade negotiations being conducted between India and the US.
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