The oil market is focused on shifting flows after the US ramped up pressure against India over imports of Russian energy to try to force an end to the Ukraine war. Washington’s threat of punishing tariffs follows a tougher stance from the EU against India, a push that also contributed to a narrower EFS.
The latest shift has opened up a so-called arbitrage window for crudes from the Atlantic Basin, which are typically priced against Brent and US’ West Texas Intermediate, to flow into Asia, said the traders, who asked not to be identified.
In recent weeks, Indian state refiners have pulled back from Russian crude, affecting October-loading Urals flows, and turned to the spot market for cargoes from Abu Dhabi, Libya, Nigeria, and even the US. At the same time, there have been signs Moscow has been offering more Urals to China, another major buyer.
