Oil Daily | OPEC Boosts Production as Indian Refiners Halt Russian Imports Amid Tariff Concerns

【Oil-Producing Countries Dynamics】

Indian Oil Corporation and other state refiners in India have halted Russian crude imports, seeking alternatives from the U.S., Middle East, and West Africa due to potential U.S. tariffs on Russian oil purchases. Indian refiners are awaiting government guidance on the implications of potential penalties by President Trump.

OPEC has agreed to increase oil production by 547,000 barrels daily next month, continuing its effort to restore 2.5 million barrels per day of supply. This follows a similar increase for August, aiming to meet global demand amid geopolitical uncertainties, particularly involving U.S. sanctions on Russian oil buyers.

Private Chinese oil companies are expanding in Iraq, expected to increase output to half a million barrels daily by 2030. They are joining state giant CNPC, which took over the West Qurna 1 field, replacing Western majors seeking other opportunities. Meanwhile, ExxonMobil and Chevron are exploring new projects in Iraq.

【Others】

China is restricting critical minerals to U.S. military manufacturers, inflating prices and causing delivery delays as companies seek alternative suppliers. China dominates refining for 19 out of 20 critical minerals analyzed by the IEA, creating price volatility and dependency issues, forcing the U.S. defense industry to reassess supply chains.

Oil prices dipped as OPEC announced significant production increases for September amid weak demand growth in Asia. Despite geopolitical risks, such as potential sanctions on Russian oil buyers and regional conflicts, the supply boost aims to stabilize the market, though risks of oversupply remain.