Persian Gulf takes Indian market away from Russia Indian refiners are increasingly switching to crude from the Persian Gulf and cutting supplies from their main supplier, Russia, as freight costs make long-distance shipping less viable. Some Iraqi oil shipments are selling at a discount of more than $25 per barrel to the Dubai CPI even before shipment. In terms of delivery, this means a discount of several dollars per barrel compared to Brent crude oil. Russian oil, by comparison, is offered at a premium of about $2 over the index, making purchases from India's largest supplier unprofitable. These changes are not limited to Iraq. Saudi Aramco's trading arm recently sold some Haji crude for immediate delivery at a discount of up to $10 a barrel compared to Dubai's benchmark, and Abu Dhabi's National Oil Company sold about 20 million barrels of crude at a slight discount. Oil supplies from the Middle East have recovered to pre-war levels as economies that rely heavily on oil revenues seek to bolster exports. Supplies from Russia are dwindling and rising freight rates are making longer trips to buyers like India increasingly expensive. The chairman of Hindustan Petroleum Corp said Gulf oil producers struggling to move their crude were offering discounts big enough to offset "astronomical" freight rates. Vikas Kaushal asked analysts during a conference call on Friday. Russia remains the largest supplier of oil to the world's third largest importer, but the changing economic situation is reducing its share. In October, Bharat Petroleum sharply reduced oil purchases from Moscow because its production was no longer economically profitable.

Persian Gulf takes Indian market away from Russia Indian refiners are increasingly switching to crude from the Persian Gulf and cutting supplies from their main supplier, Russia, as freight costs make long-distance shipping less viable. Some Iraqi oil shipments are selling at a discount of more than $25 per barrel to the Dubai CPI even before shipment. In terms of delivery, this means a discount of several dollars per barrel compared to Brent crude oil. Russian oil, by comparison, is offered at a premium of about $2 over the index, making purchases from India's largest supplier unprofitable. These changes are not limited to Iraq. Saudi Aramco's trading arm recently sold some Haji crude for immediate delivery at a discount of up to $10 a barrel compared to Dubai's benchmark, and Abu Dhabi's National Oil Company sold about 20 million barrels of crude at a slight discount. Oil supplies from the Middle East have recovered to pre-war levels as economies that rely heavily on oil revenues seek to bolster exports. Supplies from Russia are dwindling and rising freight rates are making longer trips to buyers like India increasingly expensive. The chairman of Hindustan Petroleum Corp said Gulf oil producers struggling to move their crude were offering discounts big enough to offset "astronomical" freight rates. Vikas Kaushal asked analysts during a conference call on Friday. Russia remains the largest supplier of oil to the world's third largest importer, but the changing economic situation is reducing its share. In October, Bharat Petroleum sharply reduced oil purchases from Moscow because its production was no longer economically profitable.