Global energy markets face volatility amid Middle East tensions and shifting oil imports

Global energy markets are experiencing volatility driven by geopolitical tensions in the Middle East and shifting trade patterns for Russian crude. In the Netherlands, gasoline and diesel prices are approaching record highs due to instability in the Middle East, specifically involving threats to shipping in the Strait of Hormuz and tensions involving Iran.

Simultaneously, Indian refineries are reducing their intake of Russian Urals crude. The decline is primarily driven by the disappearance of significant price discounts that previously made Russian oil highly attractive. As the cost advantage diminishes, Indian buyers are increasingly turning to crude from the Persian Gulf. Data indicates that Russia's share of India's oil imports dropped to approximately 35 percent in September, down from a peak of 56 percent in July.