The price of Russia’s Urals crude oil for May deliveries to India has remained constant for the third consecutive month, according to traders. The spot Urals cargoes are priced at a discount of approximately $3.5-$4 per barrel compared to dated Brent for May, consistent with the pricing in March and April. The stability in pricing is underpinned by expected reduced supplies and strong demand.
In May, oil shipments from Russia’s western ports are forecasted to decrease by about one million metric tons from April. This is due to domestic refineries coming back online after both scheduled and unscheduled maintenance, coupled with increased imports of this key Russian oil by Turkey, thereby supporting the Urals price in the Asian markets.
However, the potential risks from sanctions and the poor refining margins at Indian facilities are preventing any significant increase in the Urals crude prices.
As reported by ETEnergyworld.com, additionally, the cost for hiring Aframax tankers, which typically carry around 7,20,000 barrels from Russia’s Baltic ports of Primorsk or Ust-Luga to Indian ports, is holding steady at around $8 million, matching the freight rates for cargoes loaded in April.
