The price of West Texas Intermediate crude has fallen to just over $105
from more than $122 earlier this month -- raising hopes that pressures may ease
at the gas pump.
India and other Asian
nations are becoming an increasingly vital source of oil revenues for Moscow as
the U.S. and other Western countries cut their energy imports from Russia in
line with sanctions over its war on Ukraine.
China and India may be buying more Russian oil than the US previously believed, easing a supply crunch in global markets and
potentially driving a recent price decline, one of President Joe Biden’s
economic advisers said.
The price of West
Texas Intermediate crude has fallen to just over $105 from more than $122
earlier this month -- raising hopes that pressures may ease at the gas pump.
While China is
emerging as the only market for crude shipped from ports on Russia’s Pacific coast, India has rapidly become the largest purchaser of barrels loaded at
ports on its western shores
Almost 860,000 barrels
a day of crude were loaded onto tankers at Russia’s western export terminals in
the week to June 10 before heading to destinations in Asia.
“Right now, in
particular, oil markets are rather volatile,” Cecilia Rouse, chair
of Biden’s Council of Economic Advisers, said Wednesday 22 June in an interview
with Bloomberg Television. “I’ve heard part of the explanation is that China
and India are actually purchasing more of Russian oil than maybe we believe, so
that there’s more supply on the market.”
Long-term challenges remain says Rouse
Rouse spoke after
Biden called on Congress to suspend the federal gasoline tax, which is 18 cents
per gallon, for three months in a bid to deliver consumers some relief. Rouse
said she hopes the global price dip is passed on to consumers but that
long-term challenges remain.