Russian Urals crude delivered price for India at record high, Pg15

Key Highlights:

• Urals crude delivered to India's west coast reached a record high of $98.93 per barrel on Friday.
• The discount on Urals crude relative to Brent crude has decreased to $4.8 per barrel, the lowest in four months.
• Indian refiners have purchased over 40 million barrels of Russian crude this month.
• India's import of Russian oil increased to 1.5 million barrels per day (bpd) in the first 11 days of the month, a 50% increase from February.
• The US issued a universal sanctions waiver on Russian oil purchases due to supply constraints from the West Asia conflict.

Detailed Insights:

• The Strait of Hormuz disruption has increased demand for Russian oil, as it is a key route for about one-fifth of global oil and liquefied natural gas (LNG) flows.
• India relies on imports for 88% of its oil needs, with 2.5-2.7 million bpd passing through the Strait of Hormuz, mainly from Iraq, Saudi Arabia, the UAE, and Kuwait.
• The US granted waivers to India for buying Russian crude, allowing deliveries until April 12, to address global supply gaps.
• Increased Russian oil sales and higher global prices are boosting Russia's oil revenue, potentially adding billions due to the West Asia conflict.
• India had reduced Russian oil imports due to trade negotiations with the US, but imports have rebounded due to the Strait of Hormuz disruption and waivers.

Key Concepts Involved:

• Urals Crude: Russia's flagship crude oil grade, a key export commodity.
• Brent Crude: A global benchmark for crude oil prices, used to price two-thirds of the world's traded oil.
• Sanctions Waiver: A temporary lifting of sanctions to allow specific activities, such as oil purchases.