Iraq closes gap with Russian oil in FY24 as Moscow's discounts shrink

Tightening of US sanctions on Russian shipping coupled with reduced availability of Russian oil due to its participation in the OPEC+ grouping's production cuts has hurt discounts to Indian refiners

The allure of cheap Russian crude to Indian refiners faded in the financial year 2023-2024 (FY24) after Russian discounts shrunk and Iraq offered better rates to claw back into the Indian crude market, Indian government data show. The rising costs of sourcing Russian crude may contribute to lower gross refining margins of Indian state-run companies in the previous quarter, said industry officials.

Russian oil was cheaper than Iraqi crude by less than $3 per barrel in FY24 compared to over $7 per barrel a year earlier, according to calculations by Business Standard based on customs data. Iraq was India's biggest