Russian crude oil is being sold to Indian buyers at a discount exceeding $5 per barrel compared to global benchmarks, as European Union sanctions and the threat of U.S. penalties dampen demand, according to Bloomberg reporting on August 7, citing data from intelligence firm Kpler Ltd.
The price of Urals crude—the benchmark grade for Russia and a member of the OPEC+ alliance—has slipped to more than $5 below Dated Brent, a key global oil benchmark, reversing near parity prices recorded just two weeks prior.
Homayoun Falakshahi, head of crude oil analysis at Kpler, told Bloomberg that this downward price trend is expected to continue amid ongoing uncertainty over potential U.S. sanctions, which is prompting increased caution among both state-owned and private refiners in India. Additionally, scheduled maintenance at Russian refineries from August through October is anticipated to boost export volumes during this period.
This climate of uncertainty has already led India’s state-owned refiners—including Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation—to pause spot purchases of Russian crude. Sources familiar with the procurement plans told Bloomberg that these companies intend to skip the upcoming purchase cycle until receiving clear guidance from the Indian government. This suspension is expected to impact Urals cargo purchases scheduled for October delivery and could lead to further supply disruptions.
The move comes in the wake of U.S. President Donald Trump’s decision to double tariffs on all Indian exports to the United States as a response to New Delhi’s ongoing imports of Russian oil. This policy is designed to increase pressure on Moscow to halt its military actions in Ukraine. The escalation has contributed to volatility in oil futures markets, as traders assess the implications for global supply chains and Russia’s ability to find alternative buyers should Indian refiners reduce their purchases.
Earlier, President Trump also indicated that China could face similar tariff measures, following the 25% duties imposed on India for its continued acquisition of Russian petroleum.
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