Russian seaborne oil exports fall to their lowest level in a year as discounts become less attractive for Asian customers

In the first half of this month, Russia's seaborne oil exports have fallen to their lowest level since September 2021, as discounts on Russian crude become less attractive to its customers.

In the first two weeks of September, exports totaled 3.03 million barrels per day, a drop of around 314,000 barrels per day from August levels.

One of Russia's largest customers cut purchases. Russian crude flows to India decreased by 40% in the two week period.

The discount on Russian Urals crude compared to DatedBrent in Europe has gone from $40 a barrel in July to just $20 a barrel today. S&P analysts said that spot prices for Russian ESPO crude only offer a 50-cent discount.

Saudi Arabia replaced Russia as India's second top oil supplier last month.

The European Union's partial oil embargo on Moscow will affect India's demand for Russian oil. India and China can offset the decline in Europe's exports, according to the Kremlin.

Russia may soon have a larger hole to fill. According to S&P, its oil shipments to the EU have fallen below a million barrels a day.