{"id":14814,"date":"2025-07-17T04:32:49","date_gmt":"2025-07-17T04:32:49","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=14814"},"modified":"2025-07-17T04:32:49","modified_gmt":"2025-07-17T04:32:49","slug":"india-rethinks-its-oil-strategy-as-russian-discounts-dwindle","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/14814\/","title":{"rendered":"India Rethinks Its Oil Strategy as Russian Discounts Dwindle"},"content":{"rendered":"

RoydadNaft – <\/a><\/span> India’s Russian crude imports increased to 1.75 million barrels per day in H1 2025, retaining Russia’s 35% share of the Indian oil market. However, the shrinking discount on Urals crude indicates a fading advantage, with shipping costs dropping.<\/p>\n

Russian crude imports into India crept up 1% in the first half of 2025, totaling about 1.75 million barrels per day. That’s hardly a surge, considering the price allure that first pulled India deeper into Moscow’s oil orbit after the 2022 Ukraine invasion. And while Russia still holds the top supplier spot-accounting for 35% of India’s crude inflows-the real story isn’t the volumes. It’s the shrinking advantage.<\/span><\/p>\n

The discount on Urals crude has narrowed to just <\/span>$1.70-$2 per barrel<\/span><\/a> below Brent, the slimmest since the war began. A year ago, Indian refiners were gorging on Russian barrels at far steeper markdowns. But a cocktail of reduced spot availability, refinery maintenance in Russia, and locked-in term deals (like Rosneft’s supply to Reliance) has tightened access and squeezed the spread.<\/span><\/p>\n

Shipping costs, once a wild card, have momentarily dipped. Freight from Baltic ports to India fell to <\/span>$5.0-$5.3 million<\/span><\/a> per Aframax in July, as more Western-insured tankers came online. But that window could slam shut-again. The EU is prepping its 18th sanctions package, which could lower the price cap to $45. And President Trump, back in the White House, just threatened sanctions on buyers of Russian oil unless a peace deal materializes within 50 days.<\/span><\/p>\n

Indian refiners aren’t panicking-yet-but they are preparing. Some are already shifting interest to Murban or WTI. And behind the scenes, India is quietly building three new strategic reserves.<\/span><\/p>\n

India’s overall oil imports rose 4.3% in the first half to 5.2 million bpd. But the easy ride on Russian discounts may be ending. As one trader put it, the freight volatility is asleep, not dead.<\/span><\/p>\n

Updated on