Oil Daily | Ukraine Drone Strikes Hit Russian Refineries, India Boosts Russian Oil Imports Amid Discounts

【Oil-Producing Countries Dynamics】

Ukraine attacked Rosneft's Ryazan refinery and an oil depot in Luhansk, both in Russia. This attack is part of a series of Ukrainian drone strikes targeting Russian energy infrastructure, causing significant damage and affecting refineries' operations. Consequently, Russia is set to increase crude oil exports due to reduced domestic refining capabilities.

India will continue purchasing Russian crude despite U.S. pressure, citing economic benefits. Indian officials affirm purchasing Russian oil helps stabilize global prices and dismiss allegations of laundering Russian oil. Indian refiners are expected to increase Russian oil imports amid deepening discounts due to Russia’s constrained refining capacity.

【Latest Oil Policies】

Poland plans to extend the cap on power prices through the end of the year, impacting inflation trends and interest rates. This follows a recent rate cut by the National Bank of Poland. The Polish president vetoed a green energy bill easing onshore wind farm development but bundled with a freeze on energy prices.

Canada will delay implementing a mandate for electric vehicle sales, initially set for 2026. The decision, influenced by trade challenges with the U.S., includes a review of the Electric Vehicle Availability Standard to avoid burdening manufacturers. The shift reflects concerns over a slowing economy and declining electric vehicle demand in Canada.

【Company News】

India's top refiner, Indian Oil Corporation Ltd, opted for Middle Eastern and West African crude instead of U.S. crude in its latest tender, influenced by economic factors. Despite recent purchases of U.S. crude, Indian refiners remain committed to buying Russian oil, expecting to import more in September due to ongoing discounts.

【Others】

Crude oil prices are declining amid expectations of OPEC considering a production boost. Concerns about an oil glut persist despite potential production cuts. Analysts foresee stable oil prices due to OPEC's production constraints and supply risks, with demand from China mitigating the impact of price rallies.