Russian oil discounts rise as refiners shun Rosneft, Lukoil

The discounts have increased from $1.7-4 in October to $5-6 per barrel in the past fortnight

- Rituraj Baruah

Discounts on Russian oil have jumped in less than a month as buyers shun oil from sanctioned entities Rosneft and Lukoil.

International buyers avoided Russia after its invasion of Ukraine in 2022, prompting Moscow to offer discounts close to $30 per barrel. Discounts in October, when India and China stepped up purchases, were in the range of $1.7-4 per barrel. They have now increased to $5-6 in the past fortnight, two industry executives said.

"As offtake of Russian oil has dipped, suppliers are increasing the discounts on offer, and are expected to rise further with the sanctions on Rosneft and Lukoil coming into effect," one of the people cited above said on the condition of anonymity.