Russia doubles oil discount for India amid US pressure

According to Bloomberg, citing sources familiar with the matter, Russia has significantly increased the discount on the oil it sells to India.

The report states that Moscow will offer a discount of between $2 and $2.5 per barrel for Urals crude in November. This discount was around $1 per barrel in July and August.

This increase makes Russian oil more attractive to Indian refineries compared to Brent crude.

In previous months, Moscow had limited exports, prioritizing its domestic market.

Imports expected to increase in October

Indian refineries are expected to increase their purchases of Russian oil in the coming months.

According to data from the analytics firm Kpler, India’s oil imports from Russia could average 1.7 million barrels per day in October.

While this amount represents an approximately 6% increase from the previous month, it is projected to be slightly lower than the same period last year.

The prolonged trade negotiations between Washington and New Delhi and the continued increase in shipment volumes reinforce the expectation that purchases will continue.

In August, the US imposed an additional 50% tariff on certain products imported from India to pressure New Delhi to reduce its purchases of Russian oil.

However, it is noteworthy that similar measures have not been applied to China, which also heavily imports Russian crude oil.

The Indian government has stated that it makes its commercial decisions based solely on price, while also expressing interest in American energy sources.

Washington is demanding that India completely halt its purchases of Russian oil. Last month, officials in New Delhi described the ongoing talks with Washington as “constructive.”

India seeks flexible contracts with alternative suppliers

During this period, India’s state-owned refinery entities are reportedly pursuing a new strategy to mitigate potential risks.

According to sources, these entities have begun negotiations with suppliers in the Middle East and Africa for long-term contracts for 2026.

India is reportedly requesting clauses in these contracts that allow for flexibility in delivery volumes.

Through this approach, New Delhi aims to retain the flexibility to shift its oil purchases toward Russia or to resell, should trade with Russia become more advantageous.