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Market Chatter: Indian Buyers See Smaller Discounts for Russian Urals Crude Amid Supply Concerns

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Discounts for purchasers of Russian Urals crude in India have narrowed to $1-$2 a barrel below dated Brent this week amid renewed supply shortage worries, Reuters reported Wednesday, citing trade sources.

In early July, Russia's flagship grade was being offered at discounts of over $10 a barrel in India, weighed down by weaker Chinese interest and ample Middle East supplies. The discounts have dropped to $1-$2 this week for cargoes scheduled for delivery in late August and early September, the report said.

Indian demand for Russian oil has increased amid supply concerns due to renewed hostilities in the Middle East and the resulting disruption to maritime traffic in the Strait of Hormuz.

India and China continue to be the largest importers of Russian crude, which has been increasingly diverted to Asia from Europe due to Western sanctions and embargoes, it added.

has reached out to India's Petroleum and Natural Gas Ministry and Russia's Energy Ministry for comments.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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