Urals crude premiums in India fall on weak margins
Russian Urals crude premiums for June delivery to India fell to 2-4 dollars over Brent. Weak refining margins and low fuel demand are curbing refiner interest.
India refiners are cutting premiums for Urals crude from Russia as weak refining margins dampen demand. June-delivery cargoes now trade at a $2–4 premium per barrel to Brent Crude Oil, down from $6–7 in May. Premiums have eased from earlier levels.
### Supply Constraints Support Floor Prices Traders told Reuters that while premiums are easing, Urals prices are unlikely to return to a discount in the near term. The ongoing conflict involving the United States, Israel, and Iran has effectively halted tanker traffic through the Strait of Hormuz. This chokepoint closure limits Gulf crude availability, forcing Asian buyers to rely on Russian grades.
