Russian Urals oil to India sells at narrowest discounts since 2022, traders say
MOSCOW/NEW DELHI, June 6 (Reuters) - Discounts for Russian flagship Urals crude oil for delivery to Indian ports in July hit their narrowest levels since 2022 as spot supplies have tightened, four traders involved in the market said on Friday.
Narrowing discounts and tight spot supplies are nudging Indian refiners to scout for alternatives through buying tenders.
Spot discounts for Urals crude narrowed to $2.25 per barrel on average for cargoes arriving in India in July, from $2.70 to $3.10 per barrel to dated Brent on delivery ex-ship (DES) basis in the previous month, the sources said.
That is the narrowest discount for Urals oil cargoes sold to India since the Ukraine war broke out in 2022.
India became the largest buyer of Russian seaborne crude after Moscow diverted its energy supply away from the European Union which imposed a ban.
Some Indian refiners which do not have long-term supply agreements with Russian oil companies are not getting enough Urals oil in July, the sources said.
India's largest private refiner, Reliance Industries (RELI.NS), opens new tab, locked in a term supply contract with Russian oil giant Rosneft (ROSN.MM), opens new tab last year, which reduced the availability of Urals in the spot market, they said.
Russian oil traders cited higher demand for the grade from refiners in Turkey, which has recently increased buying, boosting competition with Indian refiners over the supply.
Turkey's largest oil refiner, Tupras, resumed buying Urals in April after stopping earlier this year, because of tougher U.S. sanctions on Moscow.
Two of the traders also said improving refining margins globally also helped boost Russian oil demand as refiners are eager to increase crude runs.
India remains the biggest buyer of Russian Urals oil by sea, with imports hitting a 10-month high in May.
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'North Korea has never been as strong – strong militarily as well as strong in oppressing its civilian population – as it is right now,' said Joanna Hosaniak, deputy director general of the Citizens' Alliance for North Korean Human Rights. This is, in part, thanks to a new mutual defence treaty signed between North Korea and Russia in November last year. But it is also down to its increasing ability to source foreign income through hacking and forced labour, despite Western sanctions, as it wages an information war against its enemies and its own population. Taken together, these three factors are allowing North Korea quietly to transform itself. Shopping for an upgrade Since striking a deal with Russia, North Korea has supplied Moscow with 15,000 soldiers, 100 ballistic missiles and millions of munitions to help Moscow wage war against Ukraine. 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