Sanctioned Russian oil producer Lukoil has accepted an offer from energy trader Gunvor to buy its Lukoil International unit https://t.co/r6v5vWYugG ...

Core Viewpoint - The United States has announced a new round of sanctions against Russia, specifically targeting two major oil companies: Lukoil and Rosneft, along with their subsidiaries [2]. Group 1: Sanctions Details - The sanctions include Lukoil and Rosneft, along with 34 of their subsidiaries, which are involved in oil and gas exploration, extraction, and development [2]. - U.S. citizens and companies are prohibited from engaging in transactions with these companies, and any entity that is more than 50% controlled by them will also be automatically restricted [2]. Group 2: International Coordination - This round of sanctions aligns with measures previously announced by the UK on October 15 and the EU on October 23, which include a ban on short-term contracts for importing Russian liquefied natural gas starting in April 2026, and a comprehensive long-term ban starting in 2027 [2].

Report Overview - Report Title: Crude Oil and Refined Oil Morning Report - Report Date: October 30, 2025 - Research Team: Energy and Chemicals Team of the Research Center 1. Report Industry Investment Rating - Not provided in the given content 2. Core Viewpoints of the Report - This week, oil prices rebounded significantly, with Brent crude closing above $65. The US imposed sanctions on major Russian oil producers, and India's Reliance Group will stop importing Russian oil under long - term agreements, which may lead to a near - zero supply of Russian oil to India in the short term. The reduction in Russian crude exports still needs to be evaluated, but Indian purchases have supported the Dubai market in the short term [6]. - Geopolitical concerns were triggered by the US's controversial military strike on Venezuelan transportation. Fundamentally, as of October 17, EIA crude oil inventories decreased by 961,000 barrels, US refinery operations rebounded, and the US Energy Department announced a tender to buy 1 million barrels of crude oil for the strategic reserve. Gasoline and diesel inventories decreased, showing a warming in fundamentals [6]. - Due to concerns about India's diesel exports, the crack spreads of European and American diesel strengthened, but the inventory of Singapore diesel increased by more than 5 million barrels, reaching a 243 - week high, suppressing the global diesel crack spread. In the short term, oil prices may rebound and fluctuate more, and in the medium term, the upside space of oil prices is limited due to Kuwait's statement that OPEC is ready to increase production. The oversupply situation in the fourth quarter continues, and caution is advised when chasing high prices [6]. 3. Summary by Related Catalogs 3.1 Oil Price Data - From October 23 to October 29, WTI crude oil prices changed from $61.79 to $60.48, with a change of $0.33; Brent crude oil prices changed from $65.99 to $64.92, with a change of $0.52; Dubai crude oil prices changed from $65.24 to $64.86, with a change of - $0.08 [3]. - SC crude oil prices changed from 459.70 to 462.60, with a change of - 0.10; Oman crude oil prices changed from $68.44 to $64.95, with a change of $0.17 [3]. - Japanese naphtha CFR prices changed from $573.13 to an unspecified value, with a change in the differential to Brent of - $1.32; Singapore fuel oil 380 CST changed from a - $0.73 discount to a - $1.8 discount to Brent, with a change of - $0.65 [3]. 3.2 Daily News - On October 29, the US announced a new round of sanctions against Russia, targeting two major oil companies, Lukoil and Rosneft, and their 34 subsidiaries. This is in line with the sanctions previously announced by the UK and the EU [3]. - The US Treasury issued a license for Rosneft's German subsidiaries. Russia's current crude oil exports are in line with the October plan and have not been affected by the new sanctions, but India's HMEL company has suspended further purchases of Russian crude [4]. 3.3 Regional Fundamentals - The comprehensive profit of local refineries decreased, with profits oscillating downward [6]. 3.4 Weekly Viewpoints - Short - term: Indian purchases will continue to support the Dubai market. Oil prices may rebound and have increased volatility risks [6]. - Medium - term: The reduction in Russian oil supply will be affected by multiple factors and will impact the oil price center in Q4 and Q1 of 2026 (a range of $5 - 10). The upside space of oil prices is limited due to OPEC's potential production increase, and the oversupply situation in the fourth quarter continues [6]. 3.5 EIA Data - For the week ending October 24: US crude oil exports increased by 158,000 barrels per day to 4.361 million barrels per day; domestic crude oil production increased by 15,000 barrels to 13.644 million barrels per day; commercial crude oil inventories (excluding strategic reserves) decreased by 6.858 million barrels to 416 million barrels, a decrease of 1.62%; strategic petroleum reserve (SPR) inventories increased by 533,000 barrels to 409.1 million barrels, an increase of 0.13%; commercial crude oil imports (excluding strategic reserves) decreased by 867,000 barrels per day to 5.051 million barrels per day [18]. - The four - week average supply of US crude oil products was 20.753 million barrels per day, a decrease of 0.91% compared to the same period last year [18].

Core Viewpoint - The United States has announced a new round of sanctions against Russia, specifically targeting major oil companies, including Lukoil and Rosneft, along with their 34 subsidiaries [2] Group 1: Sanctions Details - The sanctions focus on the oil and gas exploration, extraction, and development sectors [2] - U.S. citizens and businesses are prohibited from engaging in transactions with the sanctioned entities, and any entity with over 50% ownership by these companies is also automatically restricted [2] Group 2: International Coordination - This round of sanctions aligns with measures previously announced by the UK on October 15 and the EU on October 23 [2] - The EU's measures include a ban on short-term contracts for importing Russian liquefied natural gas starting April 2026, with a complete ban on long-term contracts set to take effect in 2027 [2]

Core Points - The U.S. Treasury announced sanctions against two major Russian oil companies, including Lukoil, which operates the largest refinery in the Balkans located in Bulgaria [1][3] - The sanctions are expected to impact Bulgaria's energy security and also affect other countries like Hungary and Slovakia that import oil from Russia [3] Group 1: Impact on Bulgaria - Lukoil is the third-largest company in Bulgaria, providing significant tax revenue and employment [5] - If Lukoil ceases operations due to sanctions, it would cause a major disruption in Bulgaria's fuel market [5] - Local residents express concerns about potential fuel shortages and rising prices due to the sanctions [6][9] Group 2: Government Response - The Bulgarian government held an emergency meeting to discuss measures in response to the U.S. sanctions [13] - The Energy Committee of the Bulgarian Parliament passed an amendment requiring government approval for any sale or transfer of Lukoil's assets in Bulgaria [13] - The Bulgarian President emphasized the need to prevent a fuel crisis or price increases [13]

Group 1 - The U.S. government has imposed sanctions on Lukoil and Rosneft, following similar actions by the UK, leading to an immediate increase in global oil prices [1] - Lukoil is the second-largest oil producer in Russia, accounting for approximately 2% of global oil production, with operations in 20 countries and a projected net profit of $10 billion for 2024 [1] - The company has begun evaluating potential buyers for its assets and may seek to extend its "business winding-up permit" to ensure uninterrupted operations of its international assets [2] Group 2 - Russia has consistently claimed that Western sanctions lack legitimacy and are counterproductive, with President Putin describing the U.S. actions as "unfriendly" but asserting they will not significantly impact the Russian economy [4] - Russian officials emphasize that pressure tactics are ineffective and advocate for constructive dialogue to achieve results [4]

Core Points - The U.S. has imposed severe sanctions on two major Russian oil companies, Lukoil and Rosneft, including secondary sanctions [1][10] - Lukoil announced plans to sell overseas assets to cope with the challenges posed by the sanctions [1][11] - Despite Putin's threats involving nuclear capabilities, the economic difficulties faced by Russia are becoming increasingly apparent [1][9] Sanctions Impact - The sanctions directly target Lukoil and Rosneft, which account for half of Russia's oil exports and provide over 40% of the country's oil and gas revenue [9][10] - Secondary sanctions will affect any entities engaging in transactions with these companies or their subsidiaries [10] - Major clients of Russian oil, including companies in China and India, have ceased imports of Russian oil following the sanctions [10] Lukoil's Response - Lukoil has begun the process of selling its international assets, including a 75% stake in the West Qurna-2 oil field in Iraq, which has a production capacity exceeding 480,000 barrels per day [11][13] - The company is also reviewing potential buyers' offers while maintaining a commitment to "stable operations" [14] - The sale of assets is expected to occur under the gradual approval of the U.S. Treasury [11] Political Dynamics - Putin's calm demeanor in public contrasts with his underlying anxiety regarding the economic impact of the sanctions [3][4] - Trump's administration remains firm, with Treasury Secretary Mnuchin dismissing Russian claims as mere "word games" [6][10] - Ukrainian President Zelensky has called for further sanctions against the entire Russian oil industry, not just the two companies [16]

Core Viewpoint - Russian oil company Lukoil plans to sell its overseas assets due to sanctions imposed by certain countries [1] Group 1: Company Actions - Lukoil has begun reviewing applications from potential buyers for its international assets [1] - The company intends to apply for an extension of the license issued by the U.S. Treasury Department if necessary, to ensure that international asset operations are not affected [1] Group 2: Regulatory Environment - The U.S. Treasury Department announced sanctions against Lukoil on October 22, affecting all entities and subsidiaries in which Lukoil holds 50% or more ownership [1] - All transactions with these subsidiaries must be completed by November 21 [1] Group 3: Operational Impact - The asset sale will be conducted under the gradual shutdown license issued by the U.S. Treasury's Office of Foreign Assets Control [1]

Core Viewpoint - The oversupply of oil has created conditions for the U.S. to implement stricter sanctions against Russia, particularly targeting major oil producers [3][4]. Group 1: U.S. Sanctions on Russian Oil Companies - The U.S. has announced sanctions against Russia's largest oil producers, including Rosneft and Lukoil, marking a significant escalation in economic measures against Russia [3]. - Approximately 70% of Russia's oil production and exports for 2024 are already affected by sanctions, with transactions involving Rosneft and Lukoil required to cease by November 21 [4]. - The effectiveness of these sanctions will depend on enforcement strength, reactions from major buyers like India and China, and Russia's ability to circumvent sanctions [4]. Group 2: Market Reactions and Oil Prices - The market had previously perceived an oversupply of oil, with the number of oil tankers rising to pandemic-era levels and Brent crude hovering around the critical support level of $60 [5]. - Following the U.S. sanctions announcement, the market experienced a slight recovery, driven by short covering, as traders began to question the oversupply narrative [5]. - The sanctions aim to disrupt the flow of oil that continues to support Russia's war efforts despite widespread Western embargoes [5]. Group 3: Statements from Officials - The U.S. Treasury announced that the sanctions would increase pressure on Russia's energy sector, weakening its ability to fund its military operations and support its struggling economy [6]. - Russian President Vladimir Putin claimed that sanctions would not significantly impact the country's economic well-being, asserting the stability and confidence of Russia's energy sector [6].

Group 1 - The core viewpoint is that U.S. sanctions on Russian oil companies are causing Indian firms to reconsider their oil orders, with a potential shift towards a complex evasion system to continue acquiring Russian oil [2] - Indian companies, including Reliance Industries, are adjusting their operations to comply with the sanctions, indicating a commitment to adhere to applicable regulations [3] - The Indian government faces a dilemma between maintaining its long-standing relationship with Russia for discounted oil and strengthening ties with the U.S., especially in light of previous tariffs imposed by the Trump administration [2][4] Group 2 - India's largest state-owned oil company, Indian Oil Corporation, has also stated its intention to comply with all applicable sanctions, reflecting a broader industry trend [4] - Analysts suggest that India's reliance on discounted Russian oil complicates its situation, as reverting to previous supply structures would significantly increase costs due to the need to source oil from the Gulf, West Africa, or even the U.S. [4] - Ongoing negotiations between India and the U.S. for a trade agreement may hinge on India's ability to demonstrate a reduction in oil trade with Russia, which could serve as a goodwill gesture [4]