Do you have a better deal?: India’s Jaishankar responds on getting ‘cheap oil’ from Russia
Indian Foreign Minister S Jaishankar gave a stern reply on Saturday (Dec. 9) to the criticism of New Delhi buying oil from Russia amid the country’s ongoing war with Ukraine. Foreign Minister Jaishankar was taking part in the 22nd edition of the Doha Forum panel on “Conflict Resolution in a New Era” in Doha. “Pleased to participate @DohaForumpanel today on the topic “Conflict Resolution in a New Era” in Doha today along with PM & FM@MBA_Al Thani_of Qatar and FM @EspenBarthEide of Norway. As the conflicts around us increase, the need of the hour is more diplomacy, not less,” Jaishankar said in a post on X. ‘Do you have a better deal?’ On being asked about India getting “cheap oil” from Russia, Jaishankar said, “I get oil, yes. It is not necessarily cheap. Do you have a better deal?” Last month, Indian Petroleum and Natural Gas Minister Hardeep Singh Puri said that Russia had become the largest supplier of crude oil to India, accounting for over 35 per cent of the country’s imports. In September, Puri said that New Delhi was prepared to keep buying oil from Russian companies that were allowed to make such sales since prices were cheap. Western sanctions on Russia over its war with Ukraine have capped the price Russia can charge for its crude oil, and India is prepared to buy oil and gas at the lowest possible prices from anyone, Puri told the news agency Reuters. Jaishankar on Russia-Ukraine war Meanwhile, at the Doha Forum panel, Foreign Minister Jaishankar reiterated India’s stance that the Russia-Ukraine war could only be resolved through dialogue and diplomacy and not on the battlefield. “We’ve always held to the view that this war is not going to be solved on the battlefield. At the end of the day, people are going to return to some kind of negotiating table, the sooner the better. Our effort has been to facilitate that to the extent possible. That has not been the most popular thing, at least in some parts of the world,” Jaishankar said
Surprise Crude Oil Build Pressures Prices
Crude oil inventories in the United rose by 499,000 barrels for the week ending November 29, according to The American Petroleum Institute (API). Analysts had expected a draw of 1.30 million barrels. For the week prior, the API reported a 1.232-million barrel build in crude inventories. So far this year, crude oil inventories have fallen by roughly 3.4 million barrels since the beginning of the year, according to API data. On Tuesday, the Department of Energy (DoE) reported that crude oil inventories in the Strategic Petroleum Reserve (SPR) rose by 0.7 million barrels as of December 6. SPR inventories are now at 392.5 million barrels, a figure that is about 46 million above its multi-decade low last summer, yet still 242 million down from when President Biden took office. At 3:11 pm ET, Brent crude was trading down $0.08 (-0.11%) on the day at $72.06—down roughly $1.60 per barrel compared to last Tuesday. The U.S. benchmark WTI was trading up on the day by $0.08 (+0.12%) at $68.45—up about $1.50 per barrel from last Tuesday. Gasoline inventories rose this week by 2.852 million barrels on top of last week’s 4.623-million-barrel increase. As of last week, gasoline inventories are 4% below the five-year average for this time of year, according to the latest EIA data. Distillate inventories rose by 2.452 million barrels, after last week’s 1.014-million-barrel increase. Distillate inventories were about 5% below the five-year average as of the week ending November 29, the latest EIA data shows. Cushing inventories—the benchmark crude stored and traded at the key delivery point for U.S. futures contracts in Cushing, Oklahoma—fell by 1.517 million barrels, according to API data, after rising by 112,000 barrels in the previous week.
LNG Developers Caught in a Regulatory Waiting Game
If you think LNG is America’s energy darling, think again. Two major Gulf Coast projects—Venture Global’s CP2 and Commonwealth LNG—are stuck in limbo as the U.S. Department of Energy (DOE) says its hands are tied until the Federal Energy Regulatory Commission (FERC) finishes environmental reviews. This isn’t just bureaucratic red tape; it’s a tug-of-war between energy expansion and environmental scrutiny. FERC recently yanked Venture Global’s construction go-ahead for CP2, demanding another environmental review. Commonwealth LNG is in a similar boat, waiting for FERC’s nod. With no clear timeline, developers are frustrated, environmentalists are elated, and the industry is left holding its breath. The stakes couldn’t be higher. The U.S. is the world’s top LNG exporter, thanks to soaring demand in Europe post-Russian pipeline woes. The US exported nearly 12 billion cubic feet per day last year, outpacing rivals like Qatar and Australia. But delays like this threaten that momentum, and let’s not forget that under Biden, approval times for new LNG projects have stretched from weeks to nearly a year. Adding fuel to the fire, natural gas prices are wobbling. While crude oil prices are holding steady—WTI at $69.01 and Brent at $72.68—natural gas is sliding, down 1.73% to $3.127. That’s not great news for an industry facing rising costs and political hurdles. Venture Global isn’t mincing words, calling the additional FERC review unnecessary. But this is more than a one-off slowdown; it’s emblematic of a broader clash. Coastal communities in Louisiana and Texas are speaking out against pollution, and climate activists are leveraging these grievances to push for fewer hydrocarbon projects altogether. What will likely follow is uncertainty, delays, and more court battles. The Biden administration’s focus on stricter environmental reviews has drawn praise from activists but sparked ire among energy execs. As the industry tries to balance expansion with regulation, LNG’s future is anything but smooth sailing.