Finance
Buyer interest in Russian oil up in asia, but prices steady, traders say
Published by Global Banking & Finance Review®
Posted on March 4, 2026
3 min readLast updated: March 4, 2026
Quick Summary
Amid disruption in Middle Eastern oil flows via the Strait of Hormuz, Indian and Chinese buyers are showing renewed interest in Russian crude, though prices and discounts remain stable. Freight rates have surged sharply, but Urals discounts hold steady.
Asian Demand for Russian Oil Rises While Prices Remain Steady Amid Supply Worries
Rising Interest in Russian Oil from India and China
Impact of Middle Eastern Supply Concerns
MOSCOW/NEW DELHI/SINGAPORE, (Reuters) March 4 - Buyer interest in Russian oil in India and China is being spurred by concerns over Middle Eastern supply though prices have not yet reacted, five traders told Reuters on Wednesday.
Disruption to flows via the Strait of Hormuz at the southern tip of the Gulf has tightened availability of Middle Eastern grades and pushed freight rates higher, traders and analysts said.
Indian Refiners Seek Additional Russian Oil
Approaches for March and April Deliveries
Indian refiners have approached Russian sellers about prompt March and April deliveries, according to two traders and an industry source.
"Indian refiners are now consulting with the government about the possibility of additional Russian imports,” one source said.
Chinese Buying Patterns and Strategy
Recent Purchases and Stockpiling
Chinese buyers are also showing interest, though recent buying has left them with supply.
"China bought large volumes at low prices ahead of the Lunar New Year, so it can afford to wait until the outlook for the war in Iran becomes clearer," one trader said.
Another trader added: “Buyers expect the conflict in Iran to end soon and are reluctant to pay more with Brent at current levels."
Absorption of Displaced Barrels
China in recent months has absorbed barrels displaced from India, increasing its seaborne purchases to multi‑month highs at deeply discounted prices, traders said.
Price Trends and Discounts
Russian Urals Crude Discount
The discount for Russian Urals crude loading from the port of Primorsk free on board (FOB) was $25-26 per barrel to dated Brent on Tuesday, steady with recent estimates, the latest available LSEG data showed.
Discounts at Chinese and Indian Ports
Discounts in Chinese and Indian ports on a delivery basis were also little changed from levels prior to the start of the conflict in Iran.
Market Dynamics and Future Outlook
Current Top Buyers and U.S. Pressure
China and India are already the top buyers of Russian crude, though India has eased buying recently under pressure from Washington.
Expected Changes in Indian Imports
Impact of Maintenance at Nayara Energy
Indian imports were expected to fall sharply in April due to major maintenance scheduled at Nayara Energy which is part-owned by Russia’s Rosneft and a top buyer.
Reassessment by Other Indian Refiners
Other Indian refiners were also set to scale back purchases though the turmoil in the Middle East has forced some to reassess their plans, traders said.
Russian Government's Response
Russian Deputy Prime Minister Alexander Novak said on Wednesday that Moscow is ready to increase oil supplies to China and India, Interfax reported.
(Additional reporting by Siyi Liu and Aizhu Chen in Singapore, Nidhi Verma in New Delhi; editing by Jason Neely)
Key Takeaways
- •Disruptions through the Strait of Hormuz due to the Iran conflict have sharply raised tanker freight costs—VLCC rates to Asia exceed $400,000/day—yet Urals crude discounts remain around $25‑26/bl to Brent, unchanged. (theguardian.com)
- •Indian refiners, facing tightening Middle Eastern supply and upcoming maintenance at major facilities, are consulting with government and Russian sellers about prompt March–April imports; China remains cautious, having built supply buffers pre‑Lunar New Year. (timesofindia.indiatimes.com)
- •Russia expresses willingness to increase oil exports to China and India if demand rises, signaling strategic positioning amid global energy re‑routing, though Asian buyers are balancing risk and current pricing levels. (m.economictimes.com)
References
Frequently Asked Questions about Buyer interest in Russian oil up in Asia, but prices steady, traders say
1Why are Indian and Chinese buyers showing more interest in Russian oil?
Concerns over Middle Eastern supply disruptions and higher freight rates are spurring demand from Indian and Chinese buyers, according to traders.
2Have Russian oil prices changed due to increased interest?
Prices and discounts for Russian Urals crude have remained steady despite rising interest, traders report.
3What is impacting Indian oil imports from Russia?
Indian imports are expected to decrease due to refinery maintenance and pressure from Washington, but Middle East turmoil is causing reassessment.
4How has China’s buying behavior for Russian oil changed recently?
China bought large volumes ahead of the Lunar New Year at low prices and now waits for increased market clarity before new purchases.
5Is Russia prepared to increase oil supplies to Asia?
Russian officials have stated they are ready to boost oil exports to China and India to meet demand.
