Bloomberg: Russia offers China discounted oil that India refused
Photo: EPA

Russia offers China additional volumes of Urals oil, previously purchased by India, with prompt deliveries in October and reduced prices. About writes Bloomberg.

The reason for this was a sharp increase in duties president of the United States Donald Trump on imports from India, which led the country to refuse Russian oil.

Read also
Trump won't be able to go along with Putin forever, sooner or later he will be torn off the thread

This led to changes in the global market, as India was the second largest buyer of oil from Russia.

According to traders, Chinese state-owned companies and private refiners are now negotiating to buy these cheap batches.

Urals is usually shipped from ports in western Russia, and China rarely buys it because of its remoteness and high shipping costs. Chinese refineries mostly import ESPO oil from the east of the country.

Following the US sanctions, Indian state-owned companies have reduced purchases from Russia and are looking for alternative suppliers, which has freed up some Urals for other countries.

Russian Urals crude for October deliveries is offered to Chinese buyers at a cheaper price than before: the premium to the global Brent price has dropped from $2.50 to $1.50 per barrel.

According to traders, China could already have purchased five to ten shipments of Urals oil, although this data has not been officially confirmed.

At the same time, analysts believe that China is unlikely to be able to fully compensate for the decline in purchases from India.

China's state-owned refineries are cautious about increasing imports of Russian oil, especially amid ongoing trade negotiations with the United States, which is also threatening new tariffs on energy purchases from Moscow.