Russian oil prices plunge after India halts purchases — Bloomberg
Illustrative photo: Russia now sells almost all of its oil to China (Getty Images)
Prices for Russia's flagship Urals crude oil, which China buys, have fallen to unprecedented levels as demand from India has declined and competition has fallen as a result, according to Bloomberg.
The agency's own sources note that this week, prices fell by $10 per barrel below futures for the competing Brent brand. After Indian refineries began to refuse oil from Russia due to US sanctions and tariffs, the Kremlin was forced to increase the premium.
Oil exports from Russia fell to their lowest level since August, as imports to India fell to their lowest level in three years. This put pressure on the price of Urals oil, as China remains the only available market.
Also, due to India's refusal to buy oil from Russia, the volume of oil stuck on tankers at sea has grown to over 13 million barrels, the highest level in the last 10 years. Almost half of it is in the Arabian Sea, and a fifth is in the Singapore Strait and the Yellow Sea, which could potentially be sold to China.
Total imports of Urals oil to China since the beginning of 2026 have risen to 400,000 barrels per day. This is the highest figure in the history of oil trade between Russia and China.
In addition to oil, China has also been increasing its purchases of Russian liquefied natural gas since the end of last year. The revealed data significantly exceeds the expected demand from the continent's leading importer.
However, despite all this, Russia's oil and gas revenues fell by almost half in January due to the fall in the ruble price of oil and the strengthening of the ruble. Oil and gas revenues account for about a quarter of Russia's federal budget and remain a key source of funding for military and other expenditures.
One of the main reasons is that oil refineries in India are changing their oil procurement strategy. They want to abandon oil from Russia and increase purchases from the Middle East and the US. Since December, there has been a trend towards India gradually reducing its purchases of Russian crude oil.
