Oil Prices Climb 1% After Trump Says India Will Halt Russian Imports
Oil prices rose about 1% on Thursday after U.S. President Donald Trump announced that Indian Prime Minister Narendra Modi had pledged to stop buying oil from Russia. The move could tighten global energy supplies and shift demand toward other producers.
Brent crude futures increased 56 cents, or 0.9%, to $62.47 per barrel, while U.S. West Texas Intermediate (WTI) rose 58 cents, or 1%, to $58.85 by 0655 GMT. Both benchmarks had fallen to their lowest levels since early May in the previous session amid U.S.-China trade tensions and warnings from the International Energy Agency (IEA) of a potential supply surplus in 2026 as production rises faster than demand.
India’s Energy Position and Global Reaction
Trump said that India, which sources nearly one-third of its oil from Russia, would end those imports as Washington increases pressure on Moscow to cut its energy revenues and seek a peace agreement in Ukraine. He also indicated that the U.S. plans to urge China to follow suit.
India’s foreign ministry, however, emphasized on Thursday that its top priorities remain stable energy prices and supply security, without referencing Trump’s statement. Sources told Reuters that some Indian refiners are preparing for a gradual reduction in Russian crude purchases.
U.S. Treasury Secretary Scott Bessent also said he had discussed similar expectations with Japan, urging Tokyo to cease importing Russian energy. Both India and China remain the largest buyers of Russian seaborne crude, despite ongoing U.S. and EU sanctions.
Analyst Tony Sycamore of IG noted that India’s potential exit as a major buyer could support higher crude prices, tightening global markets.
Sanctions and Supply Developments
The UK government announced new sanctions on Wednesday targeting Russia’s Rosneft and Lukoil, as well as 44 tankers in the so-called shadow fleet transporting Russian oil. Sanctions also covered four oil terminals, China’s Shandong Yulong Petrochemical, and Nayara Energy, a Russian-owned refinery in India.
Later Thursday, traders awaited the U.S. Energy Information Administration (EIA) report after mixed signals from the American Petroleum Institute (API). Preliminary data showed crude inventories rising by 7.36 million barrels, gasoline stocks increasing by 2.99 million barrels, and distillate inventories falling by 4.79 million barrels.
While lower distillate supplies point to stronger diesel demand, rising crude and gasoline stocks indicate softening U.S. consumption, even as global energy markets remain volatile. Analysts expect a smaller 0.3 million barrel increase in total U.S. crude stockpiles this week.
