Russian Urals Oil Discounts Widen in India Amid Sanctions Pressure

• Russian Urals crude oil for February delivery is trading at near-record discounts of $10 per barrel against dated Brent in Indian ports.
• This discount is a significant increase from $3-5 per barrel seen in autumn last year, making it the widest since 2022.
• The wider discounts are attributed to intensified Western sanctions on Russia's energy sector, including targeting Lukoil and Rosneft.
• India has reduced its oil imports from Russia in recent months, leading to more Russian barrels being diverted to China.
• Despite the attractive discounts, New Delhi is seeking alternatives to Urals oil due to Western pressure, with Indian Oil Corp buying from Brazil's Petrobras for March.

Why It Matters: Russian Urals oil faces record discounts in India due to sanctions, pushing India to seek alternative suppliers.