Core Insights - The article discusses the significant shift in Shandong Yulong Petrochemical's crude sourcing, primarily moving to Russian oil due to Western sanctions impacting access to other suppliers [4][3][2] Group 1: Supply Chain Changes - Shandong Yulong has transitioned from a diverse supply portfolio to relying almost entirely on Russian crude, securing approximately 350,000 b/d for November delivery compared to only 100,000 b/d earlier in the year [2][4] - The refinery's operational capacity is currently at about 90% of its 400,000 b/d design, with Russian crude now providing nearly all its feedstock [2][5] Group 2: Impact of Sanctions - Western sanctions have inadvertently created a new trade dynamic, linking Russian producers with sanctioned Chinese refiners like Yulong, which now operates almost exclusively on discounted Russian oil [4][3][9] - The sanctions imposed by the UK and EU have restricted Yulong's access to Western supplies, forcing it to adapt its sourcing strategy [4][3] Group 3: Operational Efficiency - Yulong's operational efficiency has improved due to the lower costs associated with sourcing Russian crude, which has offset the deflation in product prices and maintained profitability despite an oversupplied market [6][5] - The refinery has achieved record-high throughput in September and October, running at approximately 90% capacity [5] Group 4: Future Supply Considerations - Analysts express concerns about Yulong's ability to secure the heavy crude necessary for consistent product output, although some suggest that Russia's Urals blend could serve as a suitable substitute [8][7] - Gazprom Neft may redirect its Arctic ARCO crude to Yulong, potentially supplying the heavy feedstock needed for efficient operations [9]

Core Viewpoint - New Delhi and Beijing have resisted U.S. pressure to halt purchases of Russian crude oil, indicating a complex geopolitical landscape where sanctions may have significant implications for global oil markets [1] Group 1 - New Delhi and Beijing's ongoing purchases of Russian crude oil highlight their strategic interests and resistance to U.S. influence [1] - The potential for far-reaching sanctions against Russia poses challenges that may be difficult for these countries to overlook [1]

Core Insights - India's oil refiners are benefiting from a strong supply of Russian crude due to geopolitical events impacting global oil markets [1] Industry Impact - The ongoing attacks by Ukraine on Russia's energy infrastructure have led to a significant reduction in Moscow's domestic refining capacity [1] - This decline in refining capabilities has resulted in a diversion of a larger volume of crude oil to international markets, particularly benefiting Indian refiners [1]

Speaking to reporters on Tuesday, Trump said he may use his good relationship with Viktor Orban to ask the Hungarian premier to halt Russian crude purchases https://t.co/y0SEwRgoNg ...

US-India Trade Relations - The US is considering imposing tariffs on Indian imports, potentially reaching a 50% rate, as a tool for foreign policy objectives [2] - Pharmaceuticals and electronics may be affected in the future, making negotiations challenging [3] - India is seen as a tough negotiator, maintaining high levels of protection on many markets with persistent high tariffs [9] - The Trump administration aims to force India to make systemic changes that have been problematic for a long time [10] - India might strike a deal that maintains high protection levels while giving the US something it can live with, similar to deals with other countries [11] India's Strategic Positioning - India prioritizes the interests of its farmers, fishermen, and dairy farmers, even at a potential cost [1] - India's purchase of Russian crude oil is a deeply structural issue for its economy [2] - India has a long history of nonalignment and is positioning itself for life outside the US sphere [7] - India is reaching out to countries like Brazil and China, which could threaten long-term US objectives [6] - President Trump opposes BRICS countries, including India, from countering US power or establishing a BRICS currency [8] Geopolitical Context - Traditional US allies are struggling to compromise with the White House [4] - The US administration has treated traditional allies more like adversaries [5] - During the Biden years, there was a lot of courting of India to act as a bulwark against China [5] - Narendra Modi will meet with Lula da Silva, with a first visit to China in seven years [6]