Mumbai: On Monday, the global oil market stayed largely stable. Investors were closely watching two major developments- India’s continued purchase of Russian crude oil and Ukraine’s growing attacks on Russia’s
energy infrastructure. Brent Crude slipped below USD 64 per barrel, while West Texas Intermediate (WTI) moved close to USD 60 per barrel. Last week, Brent recorded its second consecutive weekly gain for the first time since August.
Putin Assures Uninterrupted Oil Supply to India
Russian President Vladimir Putin recently assured India that Russia will continue supplying oil without any disruption. This commitment came at a time when U.S. representatives were holding trade discussions in South Asia. Due to global oil market uncertainty, Russia’s promise is seen as very important for India, one of the world’s major oil buyers.
Ukraine Attacks Russian Energy Infrastructure
Meanwhile, Ukraine targeted a major part of Russia’s energy setup. The attack hit the CPC terminal in the Black Sea- a key hub for Russian oil exports. The strike disrupted crude loading and pushed physical crude prices higher. Ukraine also targeted other Russian energy facilities, adding more tension in the global oil market.
Supply Chain Under Pressure
These attacks have created significant pressure on the oil supply chain. With crude loading interrupted, concerns about limited supply have increased. At the same time, there is growing worry about rising production from OPEC+ countries and non-OPEC nations like the U.S., Brazil, and Guyana. This increased supply, combined with weak demand signals, has kept the market cautious.
Important Energy Reports Due This Week
This week, three major agencies- the U.S. Energy Information Administration (EIA), the International Energy Agency (IEA), and the Organization of the Petroleum Exporting Countries (OPEC)- will release their monthly reports. These reports are expected to guide the market’s next direction. Some experts predict that Brent crude could fall to USD 60 per barrel by 2026, reflecting long-term demand concerns.
