Italian Prime Minister signs gas deals with Algeria to reduce dependence on Russia

Oil Updates — Crude Prices Rebound Again; banks suspend credit from Rosneft-backed Indian refiner

RIYADH: Oil prices climbed on Tuesday as fears of a slowdown in demand in China eased after Shanghai eased some COVID-19 restrictions, and OPEC warned it would be impossible to increase production enough to compensate for the loss of Russian supplies.

Crude Brent futures rose $1.72, or 1.75%, to $100.20 a barrel, and US West Texas Intermediate contracts rose $1.76, or 1.87% , at $96.05 a barrel at 0405 GMT. Both contracts had stabilized around 4% on Monday.

Oil prices fell unexpectedly on Monday

Oil prices fell around 4% on Monday, with Brent crude falling below $100 a barrel on fears the pandemic could reduce demand in China and as IEA countries plan to release volumes oil records from strategic stocks.

At one point, the price of Brent crude was $98.43 a barrel, while WTI contracts were at $94.51.

Buying more Russian oil is not in India’s interest: Biden to Modi

Meanwhile, US President Joe Biden has told Indian Prime Minister Narendra Modi that buying more oil from Russia is not in India’s interest and could hamper the US response to the war in Ukraine. U.S. officials said.

Beginning an hour-long video call, US officials described the discussion as “warm” and “frank”, adding that Biden and Modi have both publicly expressed growing concern over the destruction inside Ukraine. , especially in Bucha, where many civilians were killed.

Biden stopped short of making a “concrete request” to Modi on Monday, an official said, noting that India was concerned about deepening ties between Russia and China.

But he told Modi that India’s position in the world would not be improved by relying on Russian energy sources, US officials said.

“The president has made it very clear that it’s not in their interest to increase this,” White House spokeswoman Jen Psaki said.

Banks suspend credit for oil imports from Indian company owned by Rosneft

Indian bank HDFC and some foreign banks have stopped offering trade credit for oil imports to Nayara Energy, a Russian-backed refiner, and some suppliers are asking for payment up front to avoid potential problems from sanctions against Moscow, four banking and industry sources told Reuters. .

Nayara was not sanctioned as part of the international response to Russia’s invasion of Ukraine, but Russian energy giant Rosneft, which owns 49% of the Indian refiner, was.

To avoid needing credit to finance foreign trade, the Mumbai-based company is selling more of its refined fuels in India, two of the sources said.

The United States does not pressure Japan

Japan has never felt pressure from the United States to abandon oil and gas projects on the Russian island of Sakhalin in which Japanese companies have stakes, the Minister of Foreign Affairs said on Tuesday. Industry.

“We intend to continue to hold the Sakhalin Projects 1 and 2 concessions, as they are stable, long-term, low-cost sources of energy that are important for the lives of Japanese citizens and business activities,” he said. Koichi Hagiuda, Japanese Minister of Industry. a press conference.

“I never felt any pressure from the US to pull out of Sakhalin’s projects,” Hagiuda said when asked about any US pressure.

(With contributions from Reuters)