Urals crude differentials to dated Brent eased after months of gradual firming amid weaker demand for September barrels in India.

Spot discounts for Russian crude for September loading have started to deepen as India, a key customer for Moscow, reduces purchases due to high prices and maintenance outages at some refineries, four traders and Indian refinery officials said.

Discounts for September loading of Russia’s flagship Urals grade for delivery at Indian ports have widened to about $6 per barrel from an average $5 for August, the trade sources said.

Urals oil differentials had been gradually firming since early this year after prices fell to record lows following an EU embargo in December 2022.

Scheduled refinery maintenance in India in September is weighing on demand from Indian buyers, traders said.

At least two Indian refiners, Mangalore Refinery and Petrochemical Ltd and Reliance Industries, have scheduled maintenance on plants during September, which would cut their crude purchases.

Kazakhstan could redirect oil exports to Russia’s Baltic Sea port of Ust-Luga instead of Novorossiysk if the situation on the Black Sea deteriorates, the head of Kaztransoil’s transport department said on Friday.

PLATTS WINDOW

No bids or offers were made for Urals, Azeri BTC or CPC Blend in the Platts window on Friday, traders said.

NEWS

China’s exports of fuel products more than doubled in July from a year earlier, data showed on Friday, as refiners maintained high run rates and took advantage of strong export margins.

China, the world’s top crude importer, is drawing on record inventories amassed earlier this year as refiners scale back purchases after OPEC+ supply cuts drove global prices above $80 a barrel, traders and analysts said.
Source: Reuters (Reporting by Reuters, Editing by Mark Potter)