International News 27/08
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India displaces China as Russia's biggest oil buyer by July 2024
A comparison of import data reveals that India has overtaken China as the largest importer of Russian oil. The reduction in Chinese oil refining has resulted in lower profit margins from fuel production, which has in turn led to a reduction in purchases. The latest shipping data from India reveals that Russian crude oil accounted for a record 44% of India's total imports in July, with a daily average of 2.07 million barrels. This represents a 4.2% increase from June and a 12% increase compared to the previous year. In contrast, Chinese customs data indicates that Russia supplied 1.76 million barrels of oil to China per day in July. Indian oil refiners have been capitalising on discounted prices on Russian oil due to Western sanctions on Moscow following its invasion of Ukraine. The rise in India's oil imports from Russia has played a role in maintaining stability in global oil prices and controlling inflation.
US Dollar regains ground after falling to lowest level in 13 months
The US dollar has shown a recovery against the euro, following concerns about a potential weakening of the US economy and expectations of a rate cut by the Federal Reserve. The dollar had previously reached a 13-month low against the euro. However, some analysts believe that the dollar's weakness was overstated, resulting in its recovery. Market fluctuations were caused by uncertainty over the size of the Fed's rate cut. Initial job growth figures were lower than expected, and unemployment figures rose, leading to expectations of a 50 basis point cut. However, the release of more positive economic data later dampened these expectations. Currently, the market projects a 25% chance of a 50 basis point cut and a 75% chance of a 25 basis point cut at the September meeting. The focus now turns to the upcoming speech by Federal Reserve Chairman Jerome Powell.