Discounts on Russian oil sold to China narrowing The gap between the average price of Russian oil and oil from other suppliers in China's imports narrowed to 5.2% in August, down from 15.6% in July, according to the Geider Institute's October monitoring report. The reasons behind broader assumptions varied. In December 2025, when the discount reached 14%, tighter sanctions against Russia reduced shipments to India and diverted some quantities to China. By March 2026, the gap had almost disappeared, shrinking to just 0.4%. However, it widened again over the summer, when a shortage of Middle Eastern crude oil available to Asian buyers pushed up the prices of competing grades faster than Russian crude prices. Market quotes also confirm the narrowing discounts, Kommersant reports. According to Argos, the average discount for Urals delivered to Chinese ports relative to Brent ice fell from $4.30 a barrel in July to $2.75 in August. The Center for Research on Energy and Clean Air (CREA) estimates the August discount to Ural Brent at about $22 per barrel. However, these figures are not directly comparable: the debate price includes shipping to Chinese ports, while the CREA estimate reflects FOB pricing, before onward shipping costs.

Discounts on Russian oil sold to China narrowing The gap between the average price of Russian oil and oil from other suppliers in China's imports narrowed to 5.2% in August, down from 15.6% in July, according to the Geider Institute's October monitoring report. The reasons behind broader assumptions varied. In December 2025, when the discount reached 14%, tighter sanctions against Russia reduced shipments to India and diverted some quantities to China. By March 2026, the gap had almost disappeared, shrinking to just 0.4%. However, it widened again over the summer, when a shortage of Middle Eastern crude oil available to Asian buyers pushed up the prices of competing grades faster than Russian crude prices. Market quotes also confirm the narrowing discounts, Kommersant reports. According to Argos, the average discount for Urals delivered to Chinese ports relative to Brent ice fell from $4.30 a barrel in July to $2.75 in August. The Center for Research on Energy and Clean Air (CREA) estimates the August discount to Ural Brent at about $22 per barrel. However, these figures are not directly comparable: the debate price includes shipping to Chinese ports, while the CREA estimate reflects FOB pricing, before onward shipping costs.