Oil prices remained steady this week amid bearish sentiment following the U.S.-China trade truce. Brent crude traded at $65.07/bbl, down from $66.48/bbl a week ago, while WTI was at $60.92/bbl, lower than $61.95/bbl. Fresh U.S. sanctions on Russian oil giants have led Indian refiners to favor costlier U.S. and Middle Eastern grades over Russian oil.

The Trump administration imposed new sanctions on Russia’s Rosneft and Lukoil, escalating tensions. India, once a major buyer of cheap Russian crude, is now turning to U.S. and Middle Eastern suppliers. Russian oil’s share in India’s imports dropped to 34% from 36%, while U.S. crude imports surged to their highest level in three years.

Sanctions on Russian oil majors have raised concerns about global oil supply. Standard Chartered analysts predict that the impact on oil prices will depend on how many Russian barrels are removed from the market. Russia’s attempts to engage Chinese energy buyers may not fully compensate for losing Indian and Chinese markets if they shift to other suppliers.

OPEC+ members are meeting virtually on 2 November to discuss adding 137 kb/d to the market monthly. Iraq’s compliance with compensation cuts will be closely watched, with exports from Kurdistan contributing to the country’s total production quota. Iraq’s oil exports currently stand at 3.6mb/d, with 64% going to India and China.

Iraq’s oil exports are crucial for India and China as they seek alternatives to Russian oil. The recent fire at the Zubair-1 depot has raised concerns about long-term disruptions to Iraq’s oil exports, potentially affecting India and China’s efforts to replace Russian oil.

By Alex Kimani for Oilprice.com.

Read more at Yahoo Finance: Indian Refiners Pivot Away From Russian Oil