ALSO READIndian Oil says Russia oil purchase a business decision, will continue buying despite US ‘sanctions’
The US has been pushing New Delhi to reduce its reliance on Russian supplies, viewing it as indirect support for Moscow amid the war in Ukraine, even as the West seeks to resolve the conflict.
Discounts make Russian oil attractive again
According to Reuters, Officials familiar with the matter said discounts on Russia’s flagship Urals crude have widened to about $3 per barrel, reviving interest from Indian refiners. China has also stepped up purchases, adding to competition for the discounted barrels.
In addition to Urals, IOC has also booked other Russian grades including Varandey and Siberian Light,reports Reuters citing officials aware of the matter.
Discounts driving India’s crude buying strategy
Reuters highlights that Indian refiners typically do not comment on their crude sourcing. However, IOC recently told analysts it would continue buying Russian oil “depending on economics,” signalling that attractive discounts will keep purchases flowing.
Oil prices holding steady amid Ukraine peace talks
On the other hand, oil prices are trading little changed on Wednesday as investors await the next steps in talks aimed at ending Russia’s invasion of Ukraine.Brent crude futures were at $65.90 a barrel, up 11 cents, at 0405 GMT. U.S. West Texas Intermediate crude for September delivery, set to expire on Wednesday, was at $62.40 a barrel, up 5 cents. The more-active October contract was at $61.90 a barrel, up 13 cents.
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Despite Trump’s efforts to broker talks between Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskiy, Moscow has not confirmed participation. Analysts caution that the likelihood of a quick resolution remains low.