Russian oil discounts fade amid renewed Middle East crisis
NEW DELHI, July 23 (Reuters) - Traders have stopped offering discounts on Russian crude oil sold to India, as disruptions to supplies from the Middle East have increased demand for alternative crudes, a finance official at India's state-run refiner Bharat Petroleum said on Thursday.
Indian refiners, the world's third-largest importer and consumer of oil, have increased their purchases of Russian oil following supply disruptions from traditional Middle Eastern producers.
The company's chief financial officer, Vitsa Ramakrishna Gupta, told analysts that the company had secured crude oil supplies for August and was seeking shipments for September delivery. Gupta made these remarks after the company announced its quarterly results.
He added that the company is receiving offers from traders regarding oil shipments from Russia for delivery in September.
He continued, "But the latest developments in the crude oil markets have certainly led to the cessation of any discounts on Russian oil."
Discounts on Russian Urals crude have recently increased to more than $10 a barrel below the price of Brent crude in the spot market at Indian ports.
Gupta said, "Although markets experienced a brief period of stability during June, the latest geopolitical developments have brought to mind their ability to rapidly reshape the operational landscape," adding that suppliers may not be in a position to supply some shipments via Red Sea routes.
