India's IOC Buys First Russian Urals Crude In 2 Years After Prices Slump

Indian Oil Corp, the country's top refiner, has bought Russian Urals crude for the first time in two years, after spot differentials slumped, according to trade sources and Refinitiv data. The opportunity for India to buy more of the Russian flagship grade that typically heads to Europe arose after its discount to global benchmark Brent fell to the widest since 2005, hit by rising tensions between Russia and the West over Ukraine.

Global oil price Brent surged past $100 a barrel on Thursday, after Russia invaded Ukraine, exacerbating concerns of oil supply disruption.

In a tender seeking high-sulphur oil, IOC bought 2 million barrels of Urals crude from European traders Vitol and Trafigura, which will be delivered in April, the sources said.

Urals crude was last imported by IOC at its Paradip port in April 2020, Refinitiv's trade flows data showed.

Separately, Indian refiner Nayara Energy has also bought 2 million barrels of Urals crude for April delivery, another source said.

In addition to Urals, IOC also bought 2 million barrels of Abu Dhabi Upper Zakum crude from ExxonMobil and 1 million barrels of Iraqi Basra Heavy crude from Trafigura which will be loading in April, trade sources said.

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