Decline in Oil Prices and New Supplies from Russia to China

• Oil prices have reached their lowest level since 2021.
• Indian NPPs halted purchases of Russian oil due to US sanctions.
• Chinese buyers are showing interest in Russian Urals oil at lower prices.

This was reported by Ukrayinska Pravda, RBC Ukraine.

Oil prices have reached their lowest level since 2021, as the market experiences a prolonged decline. As of August 8, the price of Brent crude oil dropped to $66 per barrel, while West Texas Intermediate fell below $64.

This decline is attributed to the growing supply from the US to India through its purchases of Russian oil. US President Donald Trump announced an increase in tariffs on all imports from India to 50%, which affects the purchasing of oil in Moscow. As a result, Indian state oil refineries have halted purchases and are seeking alternative suppliers.

These changes in the oil market also open up opportunities for Chinese buyers. Russian Urals oil, which previously was not widely used by Chinese NPPs due to high transportation costs, is now preferred at lower prices. Traders are conducting negotiations with Chinese buyers for Urals supplies at a premium of $1.5 per barrel, which is a decrease from $2.5 at the beginning of the week.

Experts believe that despite the reduced purchases from India, China may not be able to cover all the canceled obligations. Research shows that Urals is not the main grade for Chinese state NPPs, which limits interest in strategic reserves.

Currently, the situation in Ukraine remains tense, as global oil prices directly influence the cost of gasoline and diesel fuel. In June 2025, there was a significant spike in fuel prices in Ukraine due to rising oil prices amid the war with Iran, but in July, prices remained stable.

Tags: Energy