West Texas Intermediate advanced almost 3% to settle above $68 a barrel after President Donald Trump said he plans to make a “major statement” on Russia on Monday and reiterated criticism of President Vladimir Putin. One sanctions bill, which at least 85 senators have endorsed, would levy 500% tariffs on China and India if they make any purchases of Russian energy.
Traders have booked more non-sanctioned tankers to deliver crude to India, while the price of Russia’s flagship Urals grade has dropped to below the $60 per barrel price cap by the G7, allowing shipments involving Western companies, Reuters reported earlier this month, citing ship-tracking data and trading sources. Daily rates for non-sanctioned tankers on the western Russia to India route have spiked to the highest in a year, incentivizing more shippers to offer such cargoes.
Russia’s crude oil exports by sea jumped by 880,000 barrels per day (bpd) week-over-week to 3.4 million bpd in the week to August 27, tanker-tracking data monitored by Bloomberg showed on Tuesday.
Following several months of increased imports of Russian crude by India, the trend may finally begin to wane as it stockpiles enough to meet the country’s demand. India has favoured Russian crude in recent months due to its discounted prices, making its oil much cheaper than Middle Eastern alternatives.
China added some downward pressure to oil prices this week when it clearly signaled its intent to buy more discounted Russian oil.