Oil prices have been affected by these developments, with Brent crude oil futures and U.S. West Texas Intermediate crude futures experiencing fluctuations. Meanwhile, India, another major crude importer, is navigating disruptions in Russian oil supply but is utilizing a wind-down period in the sanctions to continue purchases until March. In the U.S., warmer-than-normal weather forecasts are reducing demand for heating fuels. Broader financial markets are also under pressure, partly due to a surge in interest in a low-cost AI model launched by Chinese firm DeepSeek, which has impacted global stock markets.
Key takeaways:
- China's crude oil demand is expected to be impacted by U.S. sanctions on Russian oil trade, with Shandong refineries potentially losing up to 1 million barrels per day of crude supply.
- Several independent refineries in China have halted operations due to new Chinese tariff and tax policies, leading to increased losses.
- Oil prices are affected by weak economic data from China and warming weather forecasts, with Brent crude and WTI hitting their lowest levels since early January.
- India is taking advantage of a wind-down period in sanctions to purchase Russian oil until March, despite facing disruptions in supply.