Indian refiners are concerned after the European benchmark Brent crude rose to the highest level since mid-April, marching towards $90 a barrel. The rise in Brent prices and the output cut by Moscow this month have made Russian Urals crude costlier, complicating matters for Indian importers, led by Indian Oil and Reliance Industries.
The surge in both Brent and Urals crude values since late July threaten billions of dollars in savings that Indian refiners made from imports of Russian oil, which was cheaper than competing West Asian crudes. Saudi Arabia has implemented deeper cuts to help lift oil prices.
Investment bank Goldman Sachs, in its latest report, expected the extra 1 million barrels per day (bpd) Saudi cuts to last