Russian crude prices are falling sharply as major buyers in Asia reduce their purchases. Ural crude, Russia’s benchmark grade, is now trading at its largest discount to Brent in nearly a year, dropping about $2–$4 per barrel below Brent for December delivery.
The shift comes after new US sanctions targeting key Russian oil producers, Rosneft and Lukoil, which require companies to finalize transactions by November 21. In response, several Indian refiners, including Hindustan Petroleum, Bharat Petroleum, Mangalore Refinery & Petrochemicals, HPCL Mittal Energy, and Reliance Industries , have paused Russian oil orders for December, representing around 65% of India’s imports from Russia. Chinese state oil companies have also suspended purchases of seaborne Russian crude, deepening discounts for cargoes in Asian ports.
The market is becoming segmented: cargoes linked to non-sanctioned suppliers maintain normal or premium prices, while those tied to sanctioned entities face steep discounts. With demand dropping in key markets, Russian exports to Asia are under pressure, threatening a critical revenue stream for Moscow’s budget.
This slowdown coincides with heightened geopolitical attention, including US pressure on India and China to limit Russian oil imports ahead of an expected visit by President Vladimir Putin to India.
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