Russian Oil Discounts Deepen as Asian Refiners Reduce Purchases Amid US Sanctions
Russian oil prices in Asia have dropped to their lowest levels in a year as major Indian and Chinese refiners cut purchases following new US sanctions on key Russian companies. These sanctions have led to the widest discounts on Russian crude, pressuring Russia's oil revenue. India's December imports of Russian oil are expected to fall sharply as buyers seek to avoid US penalties.
Following the imposition of new US sanctions targeting major Russian oil producers, significant Asian buyers—particularly from India and China—have scaled back their purchases of Russian crude, leading to the largest price discounts seen in the market in over a year. This dramatic drop in demand has forced Russian exporters to offer deeper discounts on crude sales in Asia, directly impacting Moscow’s oil revenues. India, previously a major importer of Russian oil, is expected to see a sharp decline in Russian crude imports for December as refiners pause or cut purchases to mitigate exposure to US sanctions. The situation underscores the growing financial and geopolitical pressures facing Russia as it seeks alternative markets for its energy exports amid tightening Western sanctions. Meanwhile, Chinese refiners are also reportedly reducing intake of Russian oil, amplifying the competitive pressures in Asian markets and further eroding Russia’s leverage in global oil pricing. This shift highlights the ripple effects of US policy on global energy trade, with Asian refiners now cautiously re-evaluating their reliance on Russian oil.
