Russian exporters are redirecting higher volumes of Urals crude to China as Indian refiners scale back purchases in recent weeks, according to market participants.
Traders said loadings of the flagship Urals grade from Russia’s western ports are increasingly being booked by Chinese buyers, filling the gap left by softer Indian demand. India had emerged as one of the largest buyers of Russian crude following Western sanctions, capitalising on discounted supplies.
However, refiners in India have reportedly trimmed spot purchases amid narrowing price discounts and evolving refining margins. This has prompted Russian sellers to explore stronger placements in China, where state-owned and independent refiners continue to absorb discounted barrels.
Shipping data indicates a gradual reallocation of cargoes, with more vessels bound for Chinese ports compared to previous months. Market sources noted that competitive pricing and flexible payment arrangements remain key factors supporting Russian crude flows into Asia.
Despite the shift, India remains an important outlet for Russian oil, with long-term supply dynamics influenced by freight rates, refining economics and geopolitical developments. Traders expect export flows to remain fluid, depending on pricing spreads between Asian buyers and broader global demand trends.