Russian Crude Premiums Soar Tenfold for India Amid Global Supply Disruptions

India's oil refiners are facing significant price hikes for Russian crude deliveries due to global supply chain disruptions. With Houthi attacks further squeezing Middle Eastern crude supplies, Indian refiners have lost bargaining power and may be forced to absorb a tenfold increase in price premiums for late October and November Russian crude oil deliveries. The premium has risen from $8-$9 per barrel.

The shortage of Middle Eastern crude due to Houthi attacks is putting pressure on India's oil import market, making it difficult for refiners to negotiate lower prices for Russian crude. Indian refining sources say that without sufficient bargaining power, they may have to accept the higher premiums for Russian crude.