Russian Crude Oil: Russian oil s share in India s crude imports dropped to 25% in Jan from 31% in Dec due to narrower price discounts, US sanctions impacting shippers, and increased freight costs due to Red Sea attacks. India imported 1.2 mbd of Russian crude in Jan, the same as China s import. Indian state refiners reduced imports by 21% while private sector refiners increased imports by 10%.
Oil Outlook: The front-month U.S. West Texas Intermediate crude futures , for February delivery, inched down 2 cents to USD 73.39 a barrel with the contract set to expire later on Monday. The more active March WTI contract was at USD 72.95 a barrel, down 30 cents.
Oil Economy Falls: The naval and air conflicts in the Red Sea have not supported oil prices despite mounting concern about tankers having to pause or reroute, raising shipping costs and slowing deliveries. Tensions remained high after the U.S. mounted fresh strikes against Iran-aligned Houthi militants in Yemen on Tuesday after a Houthi missile hit a Greek vessel.
OPEC Oil: "Saudi Arabia s sharp price cuts and OPEC s increased production have offset supply concerns caused by escalating geopolitical tensions in the Middle East," said CMC Markets analyst Leon Li.
Russian Oil Suppliers: For decades, the U.S. dollar has been the currency of international oil trade and efforts to find alternatives have been thwarted by the difficulties of conversion, as well as political obstacles.