India’s Russian oil binge may slow on lower discounts, payment woes: Source

Indian imports of Russian crude are likely to decline on narrowing discounts and payment problems, forcing refiners to boost supplies from other sources, a senior government official told reporters on Monday.

Russia has emerged as the biggest oil supplier to India after Western nations shunned purchases from Moscow over its invasion of Ukraine in February last year. Indian refiners have been gorging on Russian oil on the basis of deep discounts to benchmark Brent prices.

But discounts on Russia’s flagship Urals grade have tumbled to $3-$3.5 a barrel for August loading and September delivery, while the availability of Russian oil in spot markets has declined, a source at one Indian refiner said.