Russian oil said to be sold to India below price cap

For some deals this month, the price for Urals in Indian ports, including insurance and delivery by ship, has fallen to about minus $12-$15 per barrel versus a monthly average of dated Brent

Russia's flagship Urals crude has been sold at deeper discounts this month following a European ban on Russian oil imports, and dominant buyer India has bought barrels at well below a $60 price cap agreed by the West, four market sources said.

The European Union ban on imports of Russia's seaborne oil from December 5 has driven Moscow to seek alternative markets, mainly in Asia, for about 1 million barrels per day.

Also on December 5, the Group of Seven leading economies implemented a $60 price cap on Russian seaborne oil to try to limit Moscow's ability to finance its war in Ukraine.

Russia has said it will not abide by the cap even if it has to cut production.

The Western actions have left Russian producers in fierce competition with each other and with suppliers from Asia, Europe and West Asia, meaning their best hope of finding buyers is to lower prices, two traders said.

Since Russia began its invasion of Ukraine in February, India has become the main outlet for seaborne cargoes of Urals crude.

For some deals this month, the price for Urals in Indian ports, including insurance and delivery by ship, has fallen to about minus $12-$15 per barrel versus a monthly average of dated Brent, down from a discount of $5-$8 per barrel in October and $10-$11 in November, the sources said.