Oil prices rose about 1% on Thursday after U.S. President Donald Trump said Indian Prime Minister Narendra Modi had agreed to stop purchasing oil from Russia—a move that could tighten global supplies.
Brent crude futures gained 56 cents, or 0.9%, to $62.47 a barrel by 0655 GMT, while U.S. West Texas Intermediate (WTI) crude rose 58 cents, or 1%, to $58.85. Both benchmarks had hit their lowest levels since early May in the previous session, pressured by U.S.-China trade tensions and a warning from the International Energy Agency (IEA) about a potential supply surplus next year as global output rises amid weak demand.
Trump told reporters on Wednesday that India, which currently sources about one-third of its oil from Russia, had pledged to halt such imports. He added that Washington would next push China to do the same as part of efforts to cut Moscow’s energy revenues and pressure the Kremlin toward a peace deal in Ukraine.
However, India’s foreign ministry struck a cautious tone on Thursday, saying the country’s priorities remained ensuring stable energy prices and maintaining secure supplies. The statement made no reference to Trump’s remarks.
Sources told Reuters that some Indian refiners are preparing to gradually scale back Russian oil imports. Meanwhile, U.S. Treasury Secretary Scott Bessent said he had informed Japan’s Finance Minister Katsunobu Kato that Washington expects Tokyo to end Russian energy imports as well.
India and China are currently the top buyers of Russian seaborne crude, which remains under U.S. and EU sanctions. New UK sanctions announced on Wednesday targeted Russian energy giants Rosneft and Lukoil, along with four oil terminals, 44 “shadow fleet” tankers transporting Russian oil, China’s Shandong Yulong Petrochemical, and India’s Nayara Energy Limited, a Russian-owned refinery.
“This is a positive development for oil prices as it removes a major buyer—India—from the Russian crude market,” said Tony Sycamore, a market analyst at IG.
Later Thursday, investors will watch for the U.S. Energy Information Administration’s (EIA) weekly inventory report following mixed figures from the American Petroleum Institute (API). API data showed a 7.36 million-barrel rise in U.S. crude stocks for the week ending October 10, along with a 2.99 million-barrel increase in gasoline inventories and a 4.79 million-barrel drop in distillates.
While the decline in distillate stocks suggests stronger diesel demand, rising crude and gasoline inventories indicate continued sluggish consumption in the U.S., the world’s largest oil consumer. Analysts expect U.S. crude stockpiles to have increased by around 0.3 million barrels last week.
Source:Africa Publicity
