04.02.2026, 22:29
Russia increases oil discounts for India
Source: OREANDA-NEWS
OREANDA-NEWS Over the past ten days, discounts on Russian oil for Indian buyers have accelerated growth, and now the main Urals export grade, taking into account supplies and other costs, is already $11 per barrel cheaper than the Brent grade. This is reported by Bloomberg with reference to the calculations of the analytical company Argus.
Meanwhile, it is still unknown whether this level is sufficient to arouse the interest of local refineries amid the threat of sanctions from the United States and the conclusion of a trade agreement between the two countries with reduced duties.
Until January 22, the discount averaged $9.15. The current discount rate is at least three times higher than before the restrictive measures imposed by Washington on the largest Russian exporters in November last year. According to the Financial Times, excluding transportation costs, raw materials go to India at a price of 22-25 dollars per barrel, which barely covers the cost of production.
India has become one of the largest buyers of Russian oil since the outbreak of hostilities in Ukraine. In recent months, it has reduced purchases from a maximum of 2 million barrels per day to 1.2 million.
Kpler analysts believe that the country will not completely abandon supplies from Russia, but imports will remain at the level of 1.1-1.3 million barrels per day in the coming months.
The day before, US President Donald Trump announced that as part of a trade deal, India would stop importing Russian oil. In turn, Indian Prime Minister Narendra Modi did not confirm this information, and the Kremlin indicated that they did not know anything about any termination of cooperation in the field of oil.
Earlier, the Ministry of Finance reported that the oil and gas revenues of the federal budget in January collapsed to the lowest level since 2020, when the oil market collapsed due to the COVID-19 pandemic. As a result, the volume of sales of gold and foreign currency from the National Welfare Fund (NWF) in the coming month, in the period up to March 5, will reach a historic maximum.
Meanwhile, it is still unknown whether this level is sufficient to arouse the interest of local refineries amid the threat of sanctions from the United States and the conclusion of a trade agreement between the two countries with reduced duties.
Until January 22, the discount averaged $9.15. The current discount rate is at least three times higher than before the restrictive measures imposed by Washington on the largest Russian exporters in November last year. According to the Financial Times, excluding transportation costs, raw materials go to India at a price of 22-25 dollars per barrel, which barely covers the cost of production.
India has become one of the largest buyers of Russian oil since the outbreak of hostilities in Ukraine. In recent months, it has reduced purchases from a maximum of 2 million barrels per day to 1.2 million.
Kpler analysts believe that the country will not completely abandon supplies from Russia, but imports will remain at the level of 1.1-1.3 million barrels per day in the coming months.
The day before, US President Donald Trump announced that as part of a trade deal, India would stop importing Russian oil. In turn, Indian Prime Minister Narendra Modi did not confirm this information, and the Kremlin indicated that they did not know anything about any termination of cooperation in the field of oil.
Earlier, the Ministry of Finance reported that the oil and gas revenues of the federal budget in January collapsed to the lowest level since 2020, when the oil market collapsed due to the COVID-19 pandemic. As a result, the volume of sales of gold and foreign currency from the National Welfare Fund (NWF) in the coming month, in the period up to March 5, will reach a historic maximum.
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