In recent months, large volumes of Ural, a medium-acid Russian crude, have been diverted to Asia, particularly China and India, to offset falling exports to Europe. According to our most recent analysis, Asian imports of Russian oil from April to July were 80 percent, or 0.9 million barrels (bbl) per day, above pre-war levels.1

This increased flow of Russian crude to Asia appears to be the main cause of discounts to sour-grade Asian benchmarks such as