Russian oil price in India hits record as demand for Urals grows

Urals crude on India’s west coast reached $98.93 a barrel on Friday, according to data from Argus Media

Prices for Russia’s key export blend delivered to India hit a record high after the US widened its permit allowing countries to buy the nation’s crude.

Urals crude on India’s west coast reached $98.93 a barrel on Friday, according to data from Argus Media. The price, which includes shipping costs, is the highest since Russia redirected crude exports to India following its invasion of Ukraine in early 2022.

The spike follows higher global oil prices amid the ongoing war in the Middle East. The discount on Russia’s crude shipped to Indian ports narrowed to $4.80 a barrel versus the global benchmark Dated Brent on Friday, the lowest in more than four months, the data showed.

Last week the US Treasury issued its second authorization allowing buyers to take Russian oil cargoes already at sea. The move expanded a temporary waiver — granted to India alone the previous week — to any country, as President Donald Trump’s administration seeks to ease pressure on prices with the war in the Middle East entering its third week.

After receiving the green light from the US in early March, Indian refiners — including Indian Oil Corp. and Reliance Industries Ltd — purchased about 30 million barrels of unsold seaborne Russian crude, people familiar with the deals said last week.

Urals averaged $73.73 a barrel at Russia’s western ports on Friday, the highest since mid-July 2024, according to Argus Media. It’s unclear whether the so-called delivery spread — the gap between export and delivered prices — ultimately accrues to Russia.

The price is still well above the $59-a-barrel average assumed in Russia’s budget for this year. Last week President Vladimir Putin urged the nation’s oil and gas producers to take advantage of soaring commodity prices, but warned the surge is “certainly temporary” and that officials and companies should plan accordingly.