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Market Chatter: Seasonal Weakness Pressures Russia-India Crude Freight Rates

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Freight costs for Russia's Urals crude exports to India have eased in July as a larger pool of available tankers and slower seasonal demand reduced pressure on the shipping market, Reuters reported Friday, citing three trading sources.

An Aframax shipment of about 100,000 metric tons from Primorsk now costs roughly $7 million to $8 million, down from $10 million to $11 million in June, while Suezmax rates from Novorossiisk have fallen to around $10 million from about $15 million, the sources said.

If shipping through the Strait of Hormuz faces fresh disruptions, freight rates could move higher again, traders said. India's Ministry of Petroleum and Natural Gas and Russia's Ministry of Energy did not immediately respond to' request for comment.

(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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