Russian Urals Oil Trades at Close to Widest Discounts Since 2022

Russian February Urals crude oil cargoes traded at close to the widest discounts against dated Brent in Indian ports since 2022 amid intensified pressure from Western sanctions, two sources said.

Urals oil cargoes to be supplied in February traded at discounts of $10 per barrel to dated Brent for delivery in Indian ports, a $3-5 per barrel increase from estimates for cargoes loading in the autumn months last year and close to the widest discount on record, the two sources said.

Late in 2025 the U.S. imposed its toughest sanctions on Russia's energy sector, targeting oil majors Lukoil and Rosneft. It had also placed 25% extra import tariffs on Indian goods, a move it linked to New Delhi's continued imports of Russian oil.

U.S. Treasury Secretary Scott Bessent on Friday signaled the potential removal of the additional 25% tariffs on India following a sharp reduction in Indian imports of Russian oil.

New Delhi cut its oil imports from Moscow in the last two months, with sanctions pushing more Russian barrels to China.

The wide discount offered may attract additional Indian refiners and help to place more barrels with them, one of the traders said, but added that New Delhi is looking for alternatives to Urals amid Western pressure.

Indian Oil Corp, the country's top refiner, has bought 7 million barrels of oil, including from Brazil's Petrobras, for March loading to replace Russian oil, two trade sources familiar with the matter said.

Urals crude has been a mainstay feedstock for Indian refiners since 2023, when Moscow redirected flows to Asia after the European Union curbed Russian energy use.

(Reuters)