Russia Offers Deeper Crude Discounts To Indian Buyers Amid US Tariff Pressures

Indian refiners are poised to increase their Russian oil imports in the coming months as Moscow offers deeper discounts on crude supplies, making purchases increasingly attractive despite mounting pressure from Washington.

Discounts on Urals crude loading in November have reportedly widened to $2-to-$2. 50 per barrel below Dated Brent, compared with narrower discounts of approximately $1 per barrel during July and August when supplies were tighter.

The expanded price gap comes as India faces unprecedented diplomatic pressure from the United States, which imposed a 50 per cent tariff on Indian goods in August, citing New Delhi's continued purchases of Russian energy.

The widening discounts reflect Russia's need to maintain export volumes as Ukrainian attacks on refineries have reduced domestic refining capacity, diverting more crude originally intended for internal processing to international markets.

This increased availability has proved advantageous for Indian refiners, who have become significant buyers of Russian oil since Western sanctions were imposed, with Russian crude now accounting for approximately 36 per cent of India's total oil imports.

Despite Washington's escalating pressure, including Trump advisor Peter Navarro's recent Financial Times op-ed calling India's oil purchases "opportunistic," Indian state processors have begun talks with Middle Eastern and African suppliers for 2026 term deals whilst seeking greater flexibility to optimise cargoes.