India remains main buyer of Russian Urals crude
- September 6, 2023
- Posted by: Quatro Strategies
- Categories: Europe, India, Oil & Gas, Sanctions & Regulation
India remained the primary buyer of Russian Urals oil loaded from state ports in August, despite a significant increase in prices for the grade. Traders and data from the London Stock Exchange Group (LSEG) confirmed India’s continued purchase of Russian Urals oil, even as the price differential between Urals and the dated Brent benchmark crude narrowed to a record low on a delivered ex-ship (DES) basis in Indian ports.
The narrowing price gap between Urals and Brent prompted Indian refineries to cut their purchases of Urals oil for September. The discounts for Urals oil loading in August fell to $5 per barrel and below on a DES basis in Indian ports, marking the lowest level since the European Union imposed an embargo on Russian oil.
This price increase for Urals was driven by Russia’s decision to reduce oil exports by 500,000 barrels per day (bpd) in August as part of its cooperation with OPEC+ to stabilize oil markets. Russia has committed to reducing oil exports by 300,000 bpd until the end of the year.
Russia’s significant reliance on India as its main oil buyer has raised concerns for Russian oil companies, especially as Russia prepares for increased loadings from Primorsk, Ust-Luga, and Novorossiysk ports in September, coinciding with decreased demand in India due to seasonal maintenance.
In August, Russian Urals oil deliveries to India accounted for about 69% of total shipments from these ports or approximately 74% of shipments of Russian-origin crude oil. This situation is in line with July, indicating India’s continued importance as a destination for Russian Urals oil.
Interested in learning more?
Sign up for Top Insights Today
Top Insights Today delivers the latest insights straight to your inbox.
You will get daily industry insights on
Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.
Read more insights
EU nears consensus on windfall tax for profits from frozen Russian assets
The European Union (EU) is advancing plans to implement a windfall tax on profits generated by frozen Russian central bank assets, avoiding the outright seizure of immobilized funds. EU foreign ministers granted political approval for the windfall tax on Monday, with further discussions to be…
US-Taiwan deal sets 15% tariff, Taiwan cuts duties on US goods
Washington and Taipei have now put hard legal language around the “reciprocal” trade framework they first sketched in January, locking in a 15% U.S. tariff rate on imports from Taiwan while committing Taiwan to a timetable to eliminate or reduce tariffs on nearly all U.S. goods and to expand purchases of major U.S. exports over 2025-2029.
The final text is not just a tariff adjustment; it is a managed-trade package that blends market access, sector-specific purchasing pledges (notably energy and aviation), and supply-chain commitments aimed at reducing strategic vulnerability in high-technology industries.
Ukraine diplomacy won’t rewrite global energy flows
The unfolding dynamics around Donald Trump’s diplomatic push on Ukraine illustrate a rare moment where geopolitics may be less consequential for energy markets than many assume. Since Russia’s invasion of Ukraine in 2022, Western sanctions have already fundamentally reshaped global oil and gas flows.
Europe, once Moscow’s largest customer, has cut Russian pipeline gas from 45% of imports in 2021 to 18% today, with plans to phase it out completely by 2027. Russian oil now makes up only 3% of EU imports, compared with nearly 30% pre-war. That lost European demand has been largely replaced by India and China, which together have become Moscow’s new anchor markets. India’s purchases alone now account for nearly 40% of its crude imports, more than double the share in 2021.