Economists: History Shows Sanctions Against Russia Fail to Shatter Its Oil Revenue Foundation. Industry sources revealed Thursday that Indian refiners may significantly reduce their Russian oil imports due to new sanctions. According to two sources familiar with the matter, Reliance Industries, India's largest Russian oil buyer, plans to reduce or completely halt such imports. However, market doubts remain about whether the sanctions can trigger a fundamental shift in supply and demand. Rystad Energy Chief Economist Claudio Galimberti noted, "Over the past three and a half years, virtually all sanctions against Russia have failed to significantly weaken the country's production or oil revenues." Oversupply concerns sparked by OPEC+ production increases limited oil price gains on Thursday. UBS expects Brent crude oil prices to remain in the $60-70 range. On the demand side, data from the U.S. Energy Information Administration on Wednesday showed that U.S. crude oil, gasoline, and distillate inventories fell across the board last week, driven by stronger refining activity and demand.
