China is acting as a “vacuum cleaner” in global oil markets, says Mukesh Sahdev, Senior VP & Head of Oil Trading at Rystad Energy. He explains India can’t easily switch to U.S. oil as its refining system relies on heavier Russian barrels.

Beijing

The global oil market is being shaped by both geopolitical and chemical factors, particularly as China increases its oil stockpiles. This large-scale storage by China has kept oil prices higher than many expected, despite forecasts of price drops. For India, the challenge lies in sourcing the right mix of crude oil, as its refineries require specific blends that are not easily substituted by U.S. oil, which tends to be lighter.

India's reliance on Russian oil is further complicated by China's aggressive purchasing, which limits India's access to heavier barrels needed for blending. As a result, India faces difficulties in rebalancing its oil imports, highlighting the complex interplay between market chemistry and international politics.

How China's oil grab ties India's hands with Russia

One of the things that's been brought up is that if if countries want to rebalance these trade surpluses they have in the United States one of the easy way easiest ways is to just buy U.S. energy either be LNG or oil. But as you've mentioned the way your career finance are set up it doesn't make it as easy to switch to U.S. oil as it seems. Is this a fair assessment. And is this something that countries that are looking to rebalance or their trade their trade stay in standings with the U.S. through oil purchases need to consider. No I think excellent point and often doesn't get thought. I would say the chemistry of the oil is in collision with the geopolitics of the oil. Right. And ultimately the chemistry will have to win. And the trade deals have to be worked out. India is not just buying the medium sour quality barrels which it needs from for its refining system. There are also light barrels also coming from the Russian system which India is buying. So just buying a lot and a lot more of the WTI like barrels which are even getting lighter and lighter over the years I would say. And that that is not an easy fit to the crude diet which India is. India may have to do possibly a lot more blending and they may need some heavier barrels to blend with the lighter barrels. So you just can't bring those barrels without getting those heavier barrels. And that's where I would say that China's role is also very important because I would say China is becoming the vacuum cleaner of the oil markets. China has been storing huge amounts of oil in 2024 and 2025. And that is probably the main reason the oil prices which a lot of people thought about will go to 40s will go to the 50s are still hanging around near the 68 or 65 range. So I guess the answer to this complex puzzle is how China adapts its oil purchase. How India gets to buy some heavier barrels and some other barrels to possibly blend with the lighter barrels from WTI. That's how things can resolve. And these things will take time. And that's why we are seeing some hardening of the stands back because it's just not an easy problem. Imagine the world that U.S. was producing the Russia quality of barrels and Russia was producing the WTI like quality of the barrels like the U.S. India would definitely buy more from the U.S. and will not buy from Russia. So I think that's where it makes the chemistry of oil versus the geopolitics and chemistry would I believe ultimately win. But it takes a while for everybody to understand.

The U.S. military struck a drug-carrying boat hailing from Venezuela, Secretary of State Marco Rubio said, as tensions spike between the Trump administration and the Venezuelan government. Charlie D'Agata has more.

Caracas

U.S. military strikes drug-carrying boat from Venezuela, Rubio says

The House Oversight Committee on Tuesday released over 33,000 pages of documents related to sex offender Jeffrey Epstein.

Washington

33,000 pages of Jeffrey Epstein documents released by House panel

Belgium joins the ranks of Australia, France, Canada and the UK, all who have pledged to recognize a Palestinian state at the UNGA next week in a bid to ramp up pressure on the Israeli government to end the war in Gaza.

Brussels

Middle East Conflict

Belgium to recognize Palestine at the UN General Assembly

A powerful 6.0 magnitude earthquake in eastern Afghanistan killed at least 1,400 people, according to the Afghan Red Crescent Society. Thousands more were  injured.

Kunar

At least 1,400 killed in powerful Afghanistan earthquake

The death toll from Afghanistan's worst earthquake in years jumped to over 1,100 with thousands more injured, as difficult terrain hindered rescue efforts in isolated villages of the country's mountainous eastern region.

Taliban appeals for aid after quake kills over 1100 in Afghanistan

The leaders of Russia, China and India showcased a renewed commitment to co-operation on the second day of the Shanghai Cooperation Organization summit. Analysts says the friendliness is designed to project an unified alternative to the West.

Tianjin

Russia, China, India tout renewed co-operation

A plane carrying European Commission President Ursula von der Leyen was disrupted by jamming that authorities suspect was the result of Russian interference in Bulgaria.

Plovdiv

Von der Leyen's plane affected by alleged Russian GPS jamming

The world's leading genocide scholars' association has passed a resolution saying that the legal criteria have been met to establish Israel is committing genocide in Gaza, its president said on Monday (September 1).

Jerusalem

Israel committing genocide in Gaza, scholars' association says

Chinese President Xi Jinping and Russian President Vladimir Putin outlined a new global security and economic order at a regional summit on Monday (September 1), as India and Russia continued to express strong ties between their nations.

China's Xi, Russia's Putin share vision for new global order

A devastating 6.0 magnitude earthquake struck eastern Afghanistan late Sunday, killing more than 800 people and injuring hundreds more, officials said. CBS News senior foreign correspondent Holly Williams reports.

Kabul

Powerful earthquake in Afghanistan kills hundreds, destroys villages

Iran-backed Houthis raided offices of the United Nations’ food, health and children's agencies in Yemen’s capital, detaining several UN employees, officials said. The rebels tightened security across Sanaa following the Israeli killing of their prime minister and several Cabinet members.

Sana'a

Houthis raid UN offices in Yemen, detain 11 employees

A large buildup of U.S. naval forces in and around the Southern Caribbean has officials in Caracas and experts in the United States asking: is the move aimed at combating drug cartels, as the Trump administration has suggested, or is it for something else entirely?

U.S. builds up forces in Caribbean as officials, experts concerned

Officials from the Trump administration spent the weekend pushing back against a U.S. appeals court ruling that most tariffs against Canada were illegal. Economic adviser Peter Navarro called the decision politically motivated.

Global Tariffs

Trump officials push back after court rules tariffs illegal

Israel's security cabinet is considering a plan to seize Gaza City with attacks ramping up over the weekend. The Israeli military has now ended a temporary pause of military action around aid delivery locations ahead of an expected 'full-scale assault'.

Tel Aviv-Yafo

Israel intensifying attacks ahead of planned seizure of Gaza City

Illinois Gov. JB Pritzker says he's making every effort to stop President Trump from using the military to "invade states." But the White House claims the National Guard is needed to stop violent crime in Chicago.

Chicago

Trump threatens to send military to Chicago over crime

A young boy who had wandered away from his parents ended up on a closed monorail at Hersheypark in Pennsylvania this weekend. A bystander helped rescue the boy as a gathering crowd cheered. It's not clear how he made his way onto the monorail.

Hershey

Boy rescued from monorail track at Pennsylvania amusement park

A flotilla of boats carrying humanitarian aid for Palestinians in Gaza, has set sail from Barcelona. On board are organisers from 44 countries, who say they're trying to break Israel's siege on the Strip.

Barcelona

Greta Thunberg onboard second aid flotilla heading for Gaza Strip

Indian Prime Minister Narendra Modi said New Delhi was committed to improving ties with China in a key meeting with President Xi Jinping, as the two leaders discussed the need to expand trade and investment ties against the backdrop of U.S. tariffs.

Modi meets with Xi, vows to improve China ties

Pakistan's eastern Punjab province is facing one of the worst flood emergencies in recent history. Authorities say raging waters have affected the lives of more than 2 million people.

Punjab

Pakistan's Punjab province battered by historic flood

China’s Xi Jinping has welcomed Russia’s Vladimir Putin, India’s Narendra Modi and leaders from around 20 countries to the Shanghai Cooperation Organisation summit, a high-security gathering aimed at boosting Beijing’s influence and promoting "a multipolar world order."

Xi aims to show global south unity with Modi and Putin

Russia's Vladimir Putin is among a dozen leaders attending the regional security summit, which comes at a crunch moment in talks over his war on Ukraine, and for a summit that's demonstrating a strong show of unity among Global South leaders.

Putin arrives in China for key regional security summit

Chicago Mayor Brandon Johnson detailed his plan Saturday to resist President Trump's threatened immigration crackdown in his city. CBS News has learned the Trump administration plans to intensify immigration enforcement in the city as early as next week.

Chicago mayor pushes back on Trump's immigration crackdown

Russian strikes shook the Zaporizhzhia region in southern Ukraine overnight Friday, hitting a five-story apartment building, killing at least one person and injuring dozens more.

Zaporizhzhia

Russia continues assault on Ukrainian cities

For the first time since this week's deadly mass shooting at a Minneapolis church, which killed two young students and wounded more than a dozen people, a devastated community gathered Saturday at the site to attend Mass.

Minneapolis

Mass held at site of Minneapolis church shooting

The United States says it will not allow Palestinian Authority President Mahmoud Abbas to travel to New York next month for a United Nations gathering of world leaders, where several U.S. allies are set to recognise Palestine as a state.

New York

U.S bars Palestinian leadership from attending UN

The Department of Homeland Security is preparing for an immigration crackdown in Chicago as early as next week, sources told CBS News. Illinois Gov. JB Pritzker blasted the Trump administration's plans.

Chicago immigration crackdown could happen next week, sources say

The Israeli military on Friday declared Gaza City a “dangerous combat zone” before a new offensive in the Palestinian enclave's largest city. Israel is moving forward with plans to seize Gaza City despite growing international pressure to end the nearly two-year conflict.

Israel declares Gaza City a 'dangerous combat zone'

Palestinian Authority President Mahmoud Abbas has been blocked from attending the UN General Assembly in New York next month. That's as U.S. Secretary of State Marco Rubio has cancelled visas for the Palestinian delegation.

U.S. blocks Palestinian officials from attending UN general assembly

The death toll of a devastating Russian air assault in Kyiv earlier this week has been revised upward to 25. Now European allies suggest Russian President Vladimir Putin is playing U.S. President Donald Trump if he runs out the clock on Washington's peace efforts.

Breakdown