Urals Crude Discounts Narrow to $1-2/Barrel in India on Stronger Demand

Discounts on Russian Urals crude oil delivered to India have narrowed to between $1 and $2 per barrel against the dated Brent benchmark, according to three trade sources.

The sharp rebound for Russia's flagship grade marks a significant change from early July, when Urals cargoes were trading at discounts of more than $10 per barrel in India.

Stronger demand from Indian refiners was linked to renewed hostilities in the Iran war and disruptions to shipping through the Strait of Hormuz. Cargoes of Urals crude for delivery in late August and early September were offered in India at discounts of $1 to $2 per barrel this week, the sources said.

Indian refiners have stepped up purchases of Russian oil as concerns over Middle Eastern supply security resurfaced after renewed U.S. military action against Iran and fresh disruptions to tanker traffic through the Strait of Hormuz.