SINGAPORE, Feb 5 (Reuters) - Discounts on Russian oil exports to China widened to new records this week as sellers cut prices to lure demand from the world's top crude importer and offset the likely loss of India sales, traders said. Price cuts for China came after
announced on Monday
with Indian Prime Minister Narendra Modi that included halting oil purchases from Russia, but without giving details on how and when.
"China, especially Shandong's independent refiners, are the main beneficiaries of this trend — absorbing most displaced Russian barrels and boosting margins, runs, and strategic stockpiles thanks to deep discounts and supportive domestic policy," the analysts wrote in a February 4 note. Discounts for ESPO Blend, delivered from the Pacific port of Kozmino to China, widened to nearly $9 a barrel to ICE Brent this week, from $7–$8 in recent months, trade sources said. Discounts for Russian Urals grade, exported from the Baltics - typically to India - were at about $12 per barrel and could widen further, they added.
China's Russian seaborne crude imports rose to a record 1.7 million barrels per day in January, as India cut back imports to 1.1 million bpd, the lowest since November 2022, data from analytics firm Kpler showed.
