Russia has offered oil to India at a steep discount of $35 barrel on prices before the war as mounting international pressure lowers the appetite for its barrels elsewhere following the invasion of Ukraine, reported Bloomberg.
The sanctions-hit nation is offering its flagship Urals grade to India at discounts of as much as $35 a barrel on prices before the war to encourage India to lift more shipments, according to Bloomberg.
Since then, headline Brent prices have risen about $10, implying an even larger reduction from current prices. Russia wants India to take 15 million barrels contracted for this year just to begin with, and the talks are taking place at the government level.
Asia’s second-biggest oil importer is among a handful of nations that have been doubling down on Russian crude, defying international pressure and sanctions.
Oil futures dived more than $5 a barrel on Thursday morning on news that the Biden administration is weighing releasing some 1 million barrels of oil per day from strategic reserves for several months in a bid to calm soaring crude prices.
Brent futures were down $4.71, or 4.2 percent, to $108.58 a barrel, and U.S. West Texas Intermediate futures were down $5.45, or five percent, to $102.74 a barrel.
The release comes as U.S. oil stocks fell by 3.4 million barrels in the week to March 25, surpassing forecasts of a 1 million barrel drop, but implied demand for gasoline and distillates also declined.