Russian Urals Crude Flips to Premium in India Amid Tight Supply

Russian oil has flipped to a premium in India for the first time since May due to strong demand and tight supply. Cargoes of Urals crude for October delivery were offered at premiums up to $1 a barrel compared to dated Brent, while September-arrival cargoes had discounts of $1 to $2 a barrel.

The rebound reflects increased buying interest from India and China, which have become the largest buyers of Russian crude after Moscow redirected most of its oil exports to Asia following Western sanctions. Indian refiners have stepped up purchases amid renewed concerns over Middle East supply security due to military tensions involving Iran and disruptions to tanker traffic through the Strait of Hormuz.

Supply of Urals crude from Russia's Black Sea port of Novorossiysk has been constrained by drone attacks, limiting export availability and supporting prices. Chinese demand for Russian crude, including ESPO Blend, has also strengthened as buyers sought alternatives to potentially disrupted Middle Eastern supplies.