Discounts on Russian Urals crude oil delivered to India have narrowed significantly, with cargoes for late August and early September offered at just $1 to $2 a barrel below the dated Brent benchmark this week.
The compression marks a notable shift in pricing dynamics for India, which remains the largest destination for Russian crude exports.
The tightening spread reflects sustained demand from Indian refiners, who have continued to absorb Russian volumes despite broader geopolitical uncertainties.
This development follows a period where traders had largely eliminated discounts on Russian crude for September deliveries, indicating a market that is increasingly pricing Russian oil closer to global benchmarks rather than as a deeply discounted alternative.
India’s appetite for Russian crude has remained robust, with imports reaching record levels in recent months.
The surge in volume underscores the structural shift in global oil trade flows, as Indian refiners leverage their capacity to process heavier grades.