India’s Discount on Russian Urals Oil Surges to $7 a Barrel as It Ships Gasoline Back to Russia.

Urals Oil Discount Widens in India

According to Espreso.tv: India’s discount on Russian Urals crude relative to Brent has climbed to $7 per barrel, driven by a supply glut. This comes amid a mounting gasoline shortage in Russia, where more than 80 regions are facing fuel deficits. With domestic demand weakening, Indian refineries have started selling gasoline back to Russia—a move that only worsens the country’s fuel crisis.

Notably, the Urals discount has widened from $4 to $7 a barrel versus Brent, signaling growing oversupply. Indian plants have already shipped over 60,000 metric tons of gasoline back to Russia, as Russian gasoline output has dropped by a quarter. In response, official restrictions on gasoline sales have been imposed in 40 Russian regions.

Impact on Refineries and Imports

In addition, 16 Ukrainian refineries were struck in May, further affecting overall fuel supply dynamics. To counter the deepening shortage, the Kremlin has tripled fuel imports from Belarus. These steps aim to mitigate the effects of a fuel crisis now being felt across many parts of the country.

“The widening discount on Urals oil in India may reflect not only shifting global market dynamics but also deep structural problems in Russia’s domestic fuel policy.”

These developments could trigger further shifts in pricing strategies and import policies, particularly in Russia’s relationships with other fuel-producing nations. Given the escalating domestic deficit, the Russian government will likely need to introduce additional measures to stabilize the fuel market.