OIL: Flow from the East

Into Bombay Harbor last week steamed the Soviet tanker Uzhgorod, loaded with 11,000 tons of high-speed diesel fuel—and with bad news for the West. The Uzhgorod carried the first installment in a 3½-year deal under which India will buy 1,500,000 tons of Russian petroleum products, pay for them in rupees instead of the valuable foreign exchange demanded by Western oil companies. The tanker's arrival marked a milestone in Russia's mounting offensive to drive Western oil companies out of their traditional overseas markets, came just as the battle forced Western firms to cut their prices to meet Russian competition. Items:...