Countries of the Persian Gulf are ready to quickly replace Russian oil after sanctions

• Persian Gulf countries are ready to quickly replace Russian oil.
• Sanctions against Russia must be synchronized to increase military spending.
• India may withdraw from Russian oil through trade superstructures with the USA.

This is reported by RBC Ukraine, Interfax Ukraine, RBC Ukraine.

Three countries of the Persian Gulf have significant potential for oil production. In the coming months, they will be able to replace Russian raw materials, Reuters reports. In June, Russia exported 4.7 million barrels of crude oil per day, which accounted for about 4.5% of global demand, as well as 2.5 million barrels of oil products per day.

In addition, according to the International Energy Agency, global demand for oil is expected to reach 700 thousand barrels per day in 2025, which is the highest level since 2009. At the same time, oil reserves are projected to be at the level of 105.1 million barrels per day, which is an increase of 2.1 million barrels per day.

An increase in supply in recent months has been made possible due to the increased production by OPEC+, led by Saudi Arabia. In June, the group began to accelerate production to 2.2 million barrels per day and increased the quota for production for the United Arab Emirates by 300 thousand barrels per day.

As Reuters notes, despite the reduction in excess capacities of OPEC+, Saudi Arabia still has a capacity of 2.3 million barrels per day, which can be activated within 90 days. The United Arab Emirates and Kuwait have excess capacities at the levels of 900 thousand and 600 thousand barrels per day respectively.

Moreover, one of the key consumers of Russian oil, India, which imported 1.5 million barrels of oil per day in June, is currently conducting tense trade negotiations with the United States. There, New Delhi may soon consider registering trade superstructures with Washington and may withdraw from Moscow in favor of new, albeit more expensive, energy sources.

At the same time, China, which imported nearly 2 million barrels of Russian oil in June, may soon change its purchasing strategy, as it already has to deal with several levels of tariffs from the USA and considers its ties with Moscow strategic.

Currently, Kremlin financiers are still suffering, even if India stops purchasing Russian oil, as China will likely reduce its prices further.

US President Donald Trump recently shortened the term for Moscow to achieve peace with Ukraine from 50 to 10-12 days, and promised to impose additional sanctions against Russian oil exports in case of failure of negotiations.

At the same time, the Minister of Foreign Affairs of Ukraine Andrii Sybiha noted that maximum synchronization of sanctions against Russia is critically important. He emphasized that it is necessary to strengthen the pressure on the military budget of Russia through sanctions, as it can stop the terror from the Kremlin's side.

Tags: Russia/Middle East/Energy