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Market Chatter: Iranian Oil Slips to Discounts, Russian Crude Premiums Ease

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Iranian crude oil prices have flipped to discounts for the first time since April, while Russian crude premiums are easing, Reuters reported Thursday, citing sources.

As per the report, trade sources revealed that both nations are slashing prices to entice independent Chinese refiners amid sluggish demand, threatening oil revenues in Moscow and Tehran.

Iranian Light crude cargoes for June delivery to Shandong province are now being offered at a discount of 50 cents to $1 per barrel against the ICE Brent contract, the report noted.

This marks a sharp reversal from the $1 to $2 premiums seen over the past two months.

Simultaneously, premiums for Russia's popular ESPO crude have weakened.

June barrels are trading at a $3 to $4 premium to ICE Brent, down from the $4 to $5 premiums fetched last month, the report said.

Both the countries did not respond immediately to' request 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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