Russia Becomes Saviour for Indian Refiners Amidst Middle East Conflict

Russian crude prices have fluctuated wildly in recent months as India increased its procurement of Russian oil amidst Middle East conflict.

Before the war, Russian oil was available at discounts of around $2 per barrel. However, with the US-Iran conflict and the closure of the Strait of Hormuz, Indian refiners had to secure alternative supplies, making Russian crude a more attractive option.

As supply concerns mounted, Russian crude prices swung from being available at high premiums to discounts and back again. At one point, it traded at premiums of up to $20 per barrel over Brent crude, but during the brief ceasefire, pricing reversed to discounts of about $10 per barrel.

An industry executive noted that 'India became the saviour' as large volumes of Russian crude were already at sea, enabling relatively quick deliveries to Indian refiners. With buyers competing aggressively for available supplies, sellers of Russian crude were able to demand substantial premiums.