Global crude oil prices rose by nearly 1% on Thursday after U.S. President Donald Trump revealed that Indian Prime Minister Narendra Modi had assured him that India will stop purchasing oil from Russia. Russia currently supplies about one-third of India’s total crude imports.
Brent crude futures climbed by 57 cents (0.9%), reaching $62.48 per barrel, while U.S. West Texas Intermediate (WTI) rose by 54 cents, trading at $58.81 per barrel. In the previous session, both benchmarks hit their lowest levels since early May due to ongoing U.S.–China trade tensions and an International Energy Agency (IEA) report forecasting a significant rise in oil supply next year. According to the IEA, despite increased production from OPEC+ and other producers, demand is expected to remain weak.
President Trump announced on Wednesday that India would cease Russian oil purchases, and that the U.S. would now pressure China to do the same in an effort to reduce Moscow’s energy revenue and push it towards negotiations over Ukraine.
India and China are the two largest importers of Russian seaborne crude, facing U.S. and EU sanctions. For a long time, India continued buying Russian oil despite U.S. pressure, citing its energy security needs.
Market analysts view India’s decision as a positive development for the global oil market, as it removes one of Russia’s major buyers from the equation, potentially tightening supply.
Investors are now awaiting the U.S. Energy Information Administration’s (EIA) weekly report for the latest data on U.S. crude, gasoline, and diesel inventories. Preliminary figures indicate that crude oil and gasoline stocks rose last week, while diesel inventories declined.
