Russian Urals discount widens to $6/bbl

SWEETENING THE DEAL

- ARUNIMA BHARADWAJ

THE DISCOUNTS ON Russian Urals against the Oman/Dubai benchmark on a designated ex-ship India basis has widened to over $6 per barrel, sustaining Indian demand for Russian oil in the near-term, as per Kpler.

The steeper discounts against the earlier level of $2-3 per barrel are a result of the latest US sanctions on Russia's top oil producers Rosneft and Lukoil.

The widening Urals-Brent discount reflects a combination of sanctions pressure, weaker demand and operational strain, Kpler noted.

The recent US sanctions have complicated the transactions, shipping and insurance, raising risk premiums, forcing Russian suppliers to offer deeper discounts to keep barrels moving.