Oil futures are rising on Tuesday as signs emerge that U.S. sanctions on Russian oil are taking a toll on Moscow’s exports. The U.S. previously imposed 50% tariffs on India for its Russian oil purchases, although President Trump said on Tuesday that the two sides were “pretty close” to a trade deal. That could result in India reducing its reliance on Russian oil.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
“There have been signs that customers in China and India have become more cautious about purchasing Russian oil,” said analysts at Commerzbank.
Indian Refiners Hold Back on Russian Oil
Bloomberg notes that five large Indian oil refiners haven’t placed any December orders for Russian oil. At the same time, Commerzbank added that Russia has historically figured out “ways and means” to bring its oil to the market. For example, the country previously utilized shadow fleets to sell the commodity.
Oil futures have traded in a tight range since late October and have shed about 17% year-to-date amid higher U.S. production and falling demand from China.
Stay ahead of macro events with our up-to-the-minute Economic Calendar — filter by impact, country, and more.