Archive · 23 Jul 2026
Russian Oil Discounts Vanish Amid Middle East Crisis
Indian refiners have been buying more Russian oil because supplies from the Middle East have been disrupted.
Recently, there have been attacks in the Red Sea and tensions between the U.S. and Iran, which have made global oil prices go up.
Because of this, traders are no longer offering discounts on Russian oil.
This means Indian refiners might have to pay more for oil, which could affect their profits.
BPCL, one of India's big refiners, gets most of its oil through spot purchases and has secured supplies for August and September.
Traders have stopped offering discounts on Russian crude oil to India due to increased demand from Middle East supply disruptions.
Indian refiners are increasing purchases of Russian oil as traditional Middle Eastern supplies are disrupted.
BPCL has secured crude supplies for August and is scouting for September delivery.
Global oil prices have surged due to Houthi attacks in the Red Sea and U.S.-Iran tensions.
Higher crude costs may squeeze the profitability of Indian state refiners.
- Who
- Indian refiners, Russian oil suppliers, Middle Eastern producers.
- What
- Disappearance of discounts on Russian crude oil.
- When
- Recent developments due to Middle East crisis.
- Where
- India, Middle East, global oil market.
- Why
- Supply disruptions from traditional Middle Eastern sources and increased global oil prices.
Indian Refineries
Global Oil Market
Impact of Middle East Crisis
Indian Refineries
Indian refiners are increasing purchases of Russian oil due to supply disruptions from traditional Middle Eastern sources.
Global Oil Market
Global oil prices have surged due to Houthi attacks in the Red Sea and tensions in the Strait of Hormuz, reducing the need for discounts on Russian crude.
- Key Event
- Disappearance of discounts on Russian crude oil due to Middle East crisis.
- Main Players
- Indian refiners, Russian oil suppliers, Middle Eastern producers.
- Impact on Indian Refineries
- Higher crude costs may squeeze profitability.
- Recent Developments
- Houthi attacks in the Red Sea and U.S.-Iran tensions.
- BPCL's Oil Procurement
- 69% of oil needs met through spot purchases in the June quarter.
- Global Oil Price Impact
- Increased due to supply disruptions and geopolitical tensions.
