Russia selling oil at year's record discounts

The discount on Russian Urals crude versus Brent reached US$19.40 per barrel at the ports of Primorsk and Novorossiysk on 10 November, marking the highest level in the past year. [Urals is the benchmark crude for Russia, while Brent serves as the global benchmark – ed.]

Source: Russian newspaper Kommersant, citing industry sources

Details: At the beginning of this month, the discount was around US$13-14 per barrel. According to Kommersant, the sharp increase followed new US sanctions against Russian energy giants Lukoil and Rosneft.

Russian experts noted that the Urals-Brent discount had previously peaked at US$31.90 per barrel in the second quarter of 2022 and US$30 per barrel in the first quarter of 2023. However, oil prices at that time were significantly higher than in 2025.

Estimates show that the Brent price at the beginning of November stood at US$65.80 per tonne.

The last time Russian oil traded at a discount of more than US$15 per barrel was at the start of 2025, after the United States imposed a large sanctions package on Gazprom Neft, Surgutneftegaz and more than 180 vessels. Russian analysts noted that it took about three weeks for the market to stabilise before the discounts began to narrow.

Meanwhile, Russia's biggest oil buyers – India and China – appear to be gradually reducing their imports of Russian crude amid the latest sanctions.

Bloomberg, citing sources, says five major Indian refineries have not placed orders for Russian oil for December.

Background:

• Türkiye's largest refineries have recently increased purchases of non-Russian oil in response to fresh Western sanctions against Russia.
• In early November, Russia's seaborne crude exports dropped sharply – the steepest decline since January 2024 – as new US sanctions prompted key buyers to refrain from purchasing oil from Moscow.

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