Urals Crude Prices for India Rise Amid Sanctions and Supply Disruptions
The price of Russia’s Urals crude oil bound for India has climbed despite intensifying sanctions and security risks, traders told Reuters. Ukrainian drone strikes on Russian ports and pipelines in September disrupted exports, raising fears of production cuts and forcing Moscow to divert shipments to western ports.
Discounts on October-loading Urals crude have narrowed to $2–$2.50 per barrel against dated Brent, down from $3 in September. Freight rates have also surged, with costs from Russia’s Baltic ports to India jumping to $6.5–$7 million per voyage, up from $5.5–$6 million the previous month. The rise reflects shrinking shipping options as the EU and UK tighten enforcement of their oil price cap, set significantly below the G7’s $60 ceiling.
New restrictions on sanctioned tankers have complicated exports, with India’s Adani Group banning such vessels from docking at its ports, including Mundra. More than 440 ships in Russia’s “shadow fleet” face restrictions, squeezing flows to India and China. While the U.S. and EU have criticised New Delhi for boosting Russian oil imports, India continues to buy, even as Washington has imposed higher tariffs on its exports.
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