Discounts on Russian Oil Evaporate Amid Middle East Crisis
Disruptions to Middle Eastern oil supplies have boosted demand for Russian crude in India, causing discounts on Urals crude to evaporate.
Traders are no longer offering discounts on Russian oil sold to India, according to Vetsa Ramakrishna Gupta, the head of finance at Indian state refiner Bharat Petroleum Corp. The disappearance of discounts follows a jump in global oil prices after Houthi attacks on shipping in the Red Sea and renewed disruptions to flows through the Strait of Hormuz.
Gupta said BPCL has secured crude supplies for August and is scouting for cargoes for September delivery, but no longer receives discounted offers for Russian Urals crude. The company recently met 69% of its oil needs through spot purchases in the June quarter.