Russian Urals Crude Prices Plummet in China as Indian Demand Wanes

• Prices for Russia's flagship Urals crude delivered to China have fallen to an unprecedented low, dropping to about $10 a barrel below Brent futures.
• This decline is attributed to a decrease in demand from Indian processors, who previously ramped up purchases of discounted Russian oil.
• Indian refiners' appetite for Russian oil waned following US sanctions on Russian producers like Lukoil PJSC and pressure from the Trump administration.
• Russia's oil exports recently hit their lowest since August, with imports into India, the world's third-largest oil importer, contracting to a three-year low in December.
• The surplus Urals crude, with over 13 million barrels held on tankers, is now being increasingly absorbed by China, whose Urals imports have reached a record 400,000 barrels a day.

Why It Matters: Russian Urals crude prices are sinking in China due to reduced Indian demand and US sanctions.