In June, according to LSEG data and information from traders, India and Turkey emerged as the primary buyers of Urals oil cargoes loaded from Russian sea ports, while China's acquisition of this grade was hampered by poor refining margins and high freight expenses.
India, identified as the leading purchaser of seaborne Russian oil cargoes since 2022, reportedly acquired more than 65% of Urals oil loaded last month, as per Reuters estimates derived from LSEG data. Additionally, India continues to import other Russian oil grades alongside Urals. LSEG data indicated that Sikka, Vadinar, Mundra, and Cochin were the key Indian ports for receiving Urals oil cargoes, facilitating imports for major Indian oil refiners such as Reliance Industries, Nayara Energy, Indian Oil, and BPCL.
Turkey, which had significantly increased its purchases of Urals oil in May to an unprecedented level, scaled back slightly in June, representing approximately 20% of Urals oil exports last month, according to Reuters calculations based on LSEG data. The primary destinations for Urals oil cargoes in Turkey were Aliaga and Izmir, home to Tupras refineries and SOCAR's STAR refineries.
As for China, LSEG data indicated that deliveries of June-loading Urals oil to China were minimal, with only a few cargoes being sent there.