Bloomberg reported on November 24 that the discount on Russian crude oil to India has reached a two-year high due to U.S. sanctions. After the U.S. imposed sanctions on major producers such as Russian oil companies, Urals crude oil was quoted to Indian refineries at the lowest price in more than two years. The delivered price offered a discount of up to $7 per barrel compared to the Brent spot benchmark. This quotation is for goods to be shipped in December and arrive in January. The discount per barrel has significantly increased from about $3 previously. Since the sanctions took effect, most Indian refiners have stopped purchasing Russian oil and instead increased imports from the Middle East and other regions, causing the once-flourishing Russia-India crude oil trade to nearly come to a standstill. With the significant reduction in Russian crude oil prices, some Indian refiners have started considering purchasing from suppliers not subject to sanctions. However, sources said that currently only about one-fifth of the available supply in the market comes from non-sanctioned companies, limiting the choices for Indian refiners.
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