Russia's Urals Oil Faces Significant Discount Amid Middle East Tensions

Despite the global surge in oil prices driven by escalating Middle East conflicts, Russia's flagship Urals crude continues to trade at a significant discount. According to Jin10, data from Argus Media reveals that on Tuesday, Urals crude exported from Russia's western ports averaged a discount of $30.9 per barrel against the global spot Brent crude benchmark, marking the largest price gap since April 2023. While disruptions in Persian Gulf oil supplies have fueled price increases, this discount indicates that buyers still require substantial incentives to accept Russian oil. Russian Deputy Prime Minister Novak stated that Russia is prepared to increase supplies if India has additional demand. Sources familiar with the matter disclosed that India, which had previously reduced purchases due to U.S. pressure, is considering turning back to Russian sources amid supply disruptions caused by the Iranian crisis.