Russian Urals crude continues trading at steep discounts despite a global oil rally driven by Middle East tensions. The discount widened to about $30.9 a barrel below Brent, the widest gap since April 2023, as buyers demand deep incentives to take Russian barrels even as prices surge elsewhere.

Russia, the world's top crude producer after the US and Saudi Arabia, has faced western sanctions since its Ukraine invasion, forcing it to offer higher discounts to a shrinking pool of buyers. Brent crude traded near $82 a barrel after a 12% two-day rally, while WTI hovered around $75.

With Russian oil not needing to cross the Strait of Hormuz to reach India and China, some expect discounts could narrow if disruptions continue. Deputy Prime Minister Alexander Novak said Russia is ready to increase exports to these nations if they express interest in additional barrels. Urals crude at Baltic ports jumped to $54.82 a barrel, up from around $40 at week's end, providing some relief to Kremlin coffers.