Urals Crude Flips to Premium Against Dated Brent Amid Strong Asian Demand

Russian Urals crude has flipped to a premium against dated Brent for the first time since May, driven by strong demand in India and China.

Cargoes of Urals crude for October delivery are now offered at premiums up to $1 a barrel compared to dated Brent, reversing discounts of $1 to $2 a barrel for September-arrival cargoes.

The rebound reflects rising buying interest from Asia amidst renewed concerns over Middle East supply security following military tensions involving Iran and disruptions to tanker traffic through the Strait of Hormuz.

Indian refiners have stepped up purchases of Russian oil, seeking alternatives to potentially disrupted Middle Eastern supplies. Chinese demand for Urals crude has also strengthened, particularly for ESPO Blend, Russia's flagship Far East grade.