India Increases Fuel Exports to Russia Amid Oil Discounts
India is actively exporting fuel to Russia, leveraging cheap oil. This has been facilitated by increased discounts on Russian Urals oil at Indian ports.
According to Reuters, Indian refineries supplying fuel to Russia have a chance to gain significant benefits by utilizing discounts on Russian oil purchases. Industry sources report that discounts on Urals oil in India have increased from $4 to $7 per barrel compared to Brent over the last two weeks. The reasons for this price reduction include an oversupply and increased shipments from the Persian Gulf countries.
The fuel shortage in Russia has become particularly noticeable due to strikes on refineries. To alleviate the shortfall, Russia has started importing gasoline from India via sea routes, with 60,000 tons already imported, and two more tankers are expected to arrive soon.
Indian refineries are converting Russian oil into fuel, part of which is sent back to Russia to meet its domestic needs. The Kremlin confirms that it is negotiating with other countries to purchase oil products to address the fuel situation.
| Indicator | Data |
|---|---|
| Urals Discount | $7 |
| Fuel Export from India | 60,000 tons |
| Additional Tankers | 2 units |
| Peak Discount 2022 | $10 |
