US: India Cuts Russian Oil by 50%
The White House called US-India trade talks “productive” and said Indian refineries have already cut Russian oil imports by 50%. The claim, made by a US official to Reuters on Thursday, signals a shift in supply flows that could impact global markets.
However, sources in India confirmed that the cuts are not yet visible in current data. They explained that the impact will likely only appear in December or January import figures, as refineries have already booked cargoes for November shipments—including some cargoes that will only arrive in December.
The sources also said the Indian government has not yet given official instructions to refineries to reduce Russian imports. India’s Oil Ministry and several refineries that typically buy Russian oil did not immediately respond to Reuters’ requests for comment.
If the cuts do occur, Russian oil flows to Asia could shrink and impact international prices. However, the timing is uncertain. Market participants will await December-January import data and vessel movements to determine the extent of the actual reduction.
Impact on prices: Because India's import cuts have not yet been reflected in physical flows, the market is still assessing the risk of oversupply, leading to a sluggish oil market.
This morning, Brent Dec. was trading around $60.98/barrel (-0.1%) and WTI Nov. was at $56.87/barrel (-0.2%) as of 8:28 a.m. Singapore time—both still on track for their third weekly decline. If the 50% cut actually materializes and continues through Dec.–Jan., the supply pressure could ease and support prices, but for now, the bias remains bearish.
Source: Newsmaker.id
