Bloomberg analysts have noted that aggressor Russia is offering Chinese buyers urgent deliveries of its flagship Urals oil at discounted prices, suggesting that US President Donald Trump's pressure on India is already having an effect.
Points of attention
- Trump's decision to double tariffs on Indian imports has led to Indian refineries seeking alternative oil supplies, creating opportunities for increased exports to China.
- The global oil market is undergoing significant changes, with key players like Russia, China, India, and the US adapting their strategies in response to geopolitical pressures and trade dynamics.
Russia may lose buyers of its oil
Experts note that Urals deliveries arriving in October are being advertised to buyers at lower prices than before.
Despite the fact that China is the No. 1 buyer of Russian oil, which arrives by sea and land, Chinese refineries, in most cases, purchase the ESPO grade, which is produced and loaded from the eastern part of the Russian Federation.
Urals imports, shipped from ports in the west, are usually not part of the usual demand of Chinese processors due to geographical distance and high transportation costs.
Recently, US leader Donald Trump announced a doubling of tariffs on all Indian imports as punishment for purchasing Russian oil.
It was after this decision that India's state-owned refineries refused to make purchases and are also actively looking for alternative supplies, freeing up volumes that could end up in China.
Despite this, while China is seen as a potential alternative market for Urals, it remains unclear whether Beijing will compensate for the loss of Indian demand amid trade tensions with Washington.
