Traders have stopped offering discounts on Russian crude for September deliveries, marking a significant shift in the pricing dynamics for India’s largest oil supplier.
The state-run refiner Bharat Petroleum Corporation Ltd (BPCL) confirmed that the traditional price gap between Russian Urals and global benchmarks has closed as geopolitical risks in West Asia drive Brent crude above $100 per barrel.
The pricing shift comes as Brent crude has climbed more than 30% in July, absorbing a confluence of supply shocks and renewed geopolitical tensions.
BPCL has already secured supplies for July and August and booked some September cargoes, but expects clarity on final pricing within the next week.
The disappearance of discounts means Indian refiners, which have relied on cheaper Russian imports to maintain margins since 2022, now face input costs that closely track the elevated global benchmark.
This development underscores how supply fears in the Middle East are overriding the structural arbitrage that has defined the Indian refining sector for years.
The pricing shift comes as Brent crude has climbed more than 30% in July, absorbing a confluence of supply shocks and renewed geopolitical tensions.