Prices for Russian oil destined for China and India are falling due to weak demand — Reuters
Prices for Russian oil, which is purchased by China and India, have begun to fall again amid weak demand and declining refinery margins.
Reuters reports this, citing sources among traders.
According to the agency, spot premiums for Russian ESPO Blend crude for the Chinese market have fallen to $4–5 per barrel above the Brent price, down from around $6–7 previously.
Russian Urals crude is also becoming cheaper on the Indian market, where demand is also declining due to high global oil prices, which are squeezing refinery margins.
Among the reasons are production cuts at some Chinese refineries, maintenance at certain facilities, and a general weakening of demand.
Despite this, traders note that prices for Russian oil remain higher than they were before the escalation of the conflict in the Middle East.
The global oil market is entering a phase of sharp inventory drawdowns, which could trigger a new price spike, warns the International Energy Agency. Against the backdrop of supply disruptions from the Middle East, the market situation is becoming increasingly tense.
Global oil markets reacted with a sharp rise in prices after U.S. President Donald Trump rejected Iran’s latest proposal to resolve the conflict, calling it unacceptable. Investors interpreted this as a sign of growing geopolitical tension, which caused sharp fluctuations in prices.
