India and China put the squeeze on Russian oil at a discount

The cost of Russian oil for Chinese refineries and India has declined and is already trading at a discount to the benchmark Brent. Losses could be compensated by cheaper transportation.

"Urals supplies to India for July and August are traded at a discount of $2 to $3 per barrel to Bren. In April and May, raw materials were sold at a premium of $ 7 to $ 8 per barrel,"Reuters writes, citing sources.

According to them, the demand for Russian oil has fallen as Asian refineries use reserves, have found other alternatives, and in some cases have completely reduced refining volumes.

The agency noted that the major buyers of Russian oil are Chinese independent refineries, and their profitability has plummeted.

At the same time, Russian suppliers could compensate for the decrease in prices due to cheaper tanker freight.

As Reuters reported in mid-May, a reduction in oil delivery rates could raise Urals prices at shipping ports by $3-$7 per barrel, which roughly corresponds to current discounts at ports in India and China.

Earlier, EADaily wrote that the Iranian war stopped most of the exports from The decline in imports to China, record exports from the United States and temporary exemptions from sanctions on Russian oil are restraining the Persian Gulf and an even greater rise in prices. Today, the benchmark Brent is trading at $ 91.5 per barrel.