Russian oil prices have experienced a notable decline as India and China significantly reduce their oil purchases, marking a critical shift in the global energy landscape. The Urals crude benchmark, priced against the Brent crude benchmark, has seen its discount widen to $23.51 per barrel, the largest spread since March 2023. This development highlights the growing strain on Russia’s ability to maintain its position in the international oil market under intensifying sanctions.
The decision by India and China to cut their oil imports comes ahead of an impending deadline for compliance with U.S. sanctions, which are expected to further limit Russia’s access to global markets. Analysts suggest that the reduced demand from these two major buyers is contributing to the downward pressure on Russian oil prices, signaling a deepening challenge for the country’s energy exports. The market is now closely watching the potential impact of these sanctions as they could significantly affect Russia’s economic stability.