Crude oil prices have edged higher in thin trading as geopolitical risks return to the forefront, according to ANZ. India continues to resist US pressure to halt Russian crude purchases. Oil Minister Hardeep Puri argued that these flows have prevented a global price spike, dismissing claims that India has become a “laundromat” for Russian oil.
These comments coincided with a meeting between Prime Minister Narendra Modi and Russian President Vladimir Putin at a regional summit in China. However, shipments to India are facing potential disruption after the European Union sanctioned the Nayara Energy refinery, prompting Saudi Arabia and Iraq to halt sales to the facility.
Adding to the upward pressure on prices are ongoing risks to Russian energy infrastructure. Ukraine reportedly struck multiple refineries over the weekend. Tanker tracking data indicates that Russian crude exports have subsequently fallen to a four-week low, now standing at 2.72 million barrels per day.
As a result of these factors, prices in Brent Crude Oil experienced an increase of 0.9 per cent, reaching $US68.10 per barrel.
