Brent crude fell 4.2% to $78.60 per barrel, marking its largest decline in three weeks, as rising global inventories and reduced demand from Indian refiners weighed on markets. The move follows reports that India’s state-owned oil companies are pausing purchases of Russian crude.
- Brent crude fell 4.2% to $78.60 per barrel on December 9, 2025
- OECD crude inventories rose by 2.8 million barrels in the latest week
- Indian refiners HPCL and BPCL paused Russian crude purchases in late November 2025
- Urals crude traded at a $12.80 per barrel discount to Brent
- Indian crude imports from Russia declined by 180,000 bpd in Q3 2025
- Forward curves for crude have flattened, signaling weaker near-term demand expectations
Global oil prices plunged on Tuesday, with Brent crude dropping 4.2% to settle at $78.60 per barrel—the steepest weekly decline since mid-November 2025. The sell-off was driven by growing concerns over supply oversupply, as storage facilities across key consumer regions report elevated inventory levels. U.S. Energy Information Administration data showed that crude stockpiles in OECD nations rose by 2.8 million barrels last week, exceeding expectations by nearly 1.5 million barrels. Indian state-owned refiners, including Hindustan Petroleum Corporation Limited (HPCL) and Bharat Petroleum Corporation Limited (BPCL), have scaled back procurement of discounted Russian crude oil, according to multiple industry sources. This shift comes amid escalating U.S. pressure on New Delhi, including the imposition of new tariffs on Indian imports, reportedly targeting goods linked to Russian energy flows. The move signals a strategic recalibration by India’s largest refiners, who previously increased Russian crude intake by over 180,000 barrels per day in the third quarter of 2025. The slowdown in Indian buying has triggered a ripple effect across the crude market. Russian Urals crude traded at a $12.80 per barrel discount to Brent, its widest spread since June 2025. Meanwhile, forward curves for crude oil have flattened, indicating reduced expectations for near-term demand growth. This dynamic is particularly impacting Middle Eastern exporters, whose shipments to Asia are now facing tighter competition. Market participants are now watching for any reversal in India’s procurement stance, especially as winter demand in the region typically picks up. However, with geopolitical tensions and trade policy uncertainties persisting, analysts warn oil may remain under pressure until clearer signals emerge on global demand and supply balances.