Oil Daily | India Imports Record Russian Oil; Italy Bans New Exploration; France Faces Negative Power Prices

【Oil-Producing Countries Dynamics】 India will continue to buy Russian crude at low prices, prioritizing cost-effective energy policies. As a major crude importer, India's demand aligns with its expanding economy and refinery capacities. In July, Russia became India's largest oil supplier, with India importing record amounts of Russian oil, and considering long-term deals. 【Latest Oil Policies】 The Biden Administration faces criticism for halting LNG export permits, impacting U.S. energy security and climate efforts. Industry executives demand reform as natural gas is vital for increasing electricity demand. The Infrastructure Bill offers funding for energy projects, but tension remains over policy coherence. Italy plans to ban new oil and condensate exploration, focusing on green energy ambitions while maintaining existing concessions. The shift includes transitioning to gas-fired plants and reducing reliance on Russian gas. Italy's Central Bank advocates for developed economies to aid developing nations in the energy transition. 【Industry News】 India is projected to drive 35% of global energy demand growth over the next two decades, with a focus on energy transition and renewable targets. The country plans to expand refining capacities and is set to triple natural gas consumption by 2050, supported by significant investment commitments. The Dutch government provides a €19 billion loan to TenneT, the grid operator, after a failed sale of its German network. The funds will support rising electricity demand and grid investments. Private investment is being considered to meet capital needs, as Germany intensifies its shift to renewable energy. France experienced negative power prices due to low demand and high renewable generation. This trend of negative pricing challenges investment in energy storage and highlights the need for grid management in a renewable-reliant system, reshaping Europe's energy landscape. 【Company News】 OFS Technologies, formed after Baker Hughes exited Russia, is increasing well inventories to boost future oil production. Despite OPEC cuts, drilling persists as companies seek new reserves. OFS holds a significant market share in Russia, preparing for possible production increases. Slumping refining margins in China lead to bankruptcies of Shandong province refineries. Weakened demand and low margins have caused operational halts and financial distress. China's refiners are sensitive to declining margins, affecting refinery throughput and leading to significant inventory builds. 【Others】 Israel's intelligence service allegedly sabotaged Hezbollah's pagers, leading to deadly explosions in Lebanon. The incident further escalates regional tensions and impacts oil market dynamics. Lebanon and Hezbollah blame Israel, and Hezbollah vows retaliation, affecting regional security and oil market stability.