Price differentials for Russia's Urals crude delivered to India in August have fallen to their lowest levels since late February amid ample supply and rising competition, three trade sources told Reuters on Wednesday.
They said discounts for August Urals cargoes delivered to Indian ports on a DES basis had widened to below $7 per barrel versus the dated Brent benchmark, from about $4 per barrel just 10 days ago.
Russia's flagship grade is trading at its weakest level in India since the outbreak of the Iran war, as Middle Eastern producers resume shipments through the Strait of Hormuz following last month's interim peace deal.
During the winter, when tighter U.S. sanctions disrupted Russian oil trade, Urals discounts to Brent widened to as much as $10 per barrel, compared with $1 to $3 per barrel last summer.
Crude supplies from the Gulf are expected to increase as the Strait of Hormuz reopens. Russia is also raising exports.