Urals Crude Discounts in India Plummet Amid Iran War and Strait of Hormuz Disruptions

Russian Urals crude oil discounts in India have decreased to between $1 and $2 per barrel compared to the Brent benchmark dated last year due to supply concerns.

The increased demand for Indian refined products was linked to renewed hostilities during the Iran War and disruptions in shipping through the Strait of Hormuz.

Russia's flagship grade has seen a dramatic change from the early part of July when Urals cargoes traded at discounts exceeding $10 per barrel in India, which was due to Middle Eastern surpluses and weaker interest in buying from China.

India and China are still the largest buyers of Russian crude oil, which was redirected to Asia from Europe after Western sanctions and embargoes in response to Russia's war in Ukraine.