Our Bureau
New Delhi
Russian oil prices in India have soared to a new high, hitting $98.93 per barrel last Friday. This marks the steepest level since 2022, when Russia began sending more crude to Asia after Western sanctions over Ukraine. Indian refiners are snapping up Urals crude, Russia’s main export grade, as supplies tighten worldwide.
The surge comes from the ongoing war in the Middle East, now in its third week. Fighting has slowed oil shipments through key routes like the Strait of Hormuz, creating shortages. Global prices have jumped, and the gap between Urals and the Brent benchmark has shrunk to just $4.80 per barrel, the smallest in four months. Indian buyers, including big names like Indian Oil Corp. and Reliance Industries, purchased about 30 million barrels of Russian oil already at sea.
A key boost came from the US under President Donald Trump. Last week, the US Treasury granted a waiver letting countries buy Russian cargoes en route, easing price pressures in oil market. This follows an earlier nod just for India. Refiners jumped at the chance, paying premiums over recent weeks to secure supplies. At Russia’s ports, Urals averaged $73.73 per barrel, well above the $59 level in Moscow’s budget.
Experts say this demand spike is temporary. Russia’s President Vladimir Putin told oil firms to cash in but prepare for a drop. For India, the world’s third-largest oil buyer, cheaper Russian crude has been vital since 2022, making up a big chunk of imports.
