Now Reading: Four buffers keep global oil prices stable despite supply shock
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Four buffers keep global oil prices stable despite supply shock
Four buffers keep global oil prices stable despite supply shock
Global crude prices have stayed relatively stable despite a major supply disruption, helped by weaker demand, rising output outside the Gulf, alternative export routes and strategic stock releases, The Hindu Businessline reports.…
The Story in Brief
Global crude prices have stayed relatively stable despite a major supply disruption, helped by weaker demand, rising output outside the Gulf, alternative export routes and strategic stock releases, The Hindu Businessline reports. Alpine Macro strategist Kelly Xu said non-OPEC+ supply could grow by about 0.6 million barrels a day in 2026, led by Brazil, the US, Canada and Argentina.
Xu said India’s 90 per cent import dependence has not yet caused a sharp inflation impact because fuel prices rose gradually and fiscal measures limited the pass-through. She said Indian refiners still retain bargaining power over Russian crude, as sanctions restrict Russia’s buyers and China’s reduced imports have lowered competition, though earlier deep discounts have narrowed.
The Indian Opinion
The easy story is that India has either defeated an oil shock or is being rescued by cheap Russian crude. Neither is complete. Stable prices, controlled fuel increases and non-Gulf supply have bought time, but tax cuts and support for oil companies carry fiscal costs. Russian discounts also depend on sanctions, shipping and Chinese demand. The real test is whether a prolonged conflict pushes crude sharply higher and forces larger subsidies or retail price increases.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
