Russian Urals crude delivered to India has flipped to a premium against the dated Brent benchmark for the first time since May as stronger Asian demand coincides with tighter export availability, three trading
Russian Urals crude delivered to India has flipped to a premium against the dated Brent benchmark for the first time since May as stronger Asian demand coincides with tighter export availability, three trading sources said.
Cargoes of Urals crude for October delivery were offered this week at premiums up to $1 a barrel to dated Brent, compared with discounts of $1 to $2 a barrel for September-arrival cargoes, the sources said.
The rebound reflects a combination of rising buying interest from India and China and lower availability of Russian barrels from the Black Sea due to ongoing drone strikes on Russian export terminals there.
Indian refiners have stepped up purchases of Russian oil amid renewed concerns over Middle East supply security following fresh military tensions involving Iran and disruptions to tanker traffic through the Strait of Hormuz, traders said.
The same factors have also supported Chinese demand for Russian crude, including ESPO Blend, Russia's flagship Far East grade. Premiums for ESPO Blend have strengthened in recent weeks as Chinese buyers sought alternatives to potentially disrupted Middle Eastern supplies, traders said.
At the same time, supply of Urals crude loaded from Russia's Black Sea port of Novorossiysk has been constrained by
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