Oil Rallies as India Halts Russian Seaborne Crude Purchase
Oil prices increased on Thursday after US President Donald Trump said that India would stop importing oil from Russia. The elimination of Russian exports will reduce oil glut concerns and lift market sentiment, despite lingering uncertainties over US-China trade tensions.
Russian seaborne oil exports have been affected by both increased volume and geopolitical factors, including Ukrainian drone attacks on refining infrastructure and Western sanctions like the G7 price cap. EU and US sanctions have also reduced Moscow receipts from oil sales.
Over time, key buyers of Russian discounted seaborne oil remain India and China. Brent crude was trading at $62.39 per barrel, up 0.24% from the previous close of $62.24.
US benchmark West Texas Intermediate (WTI) also rose 0.29% to $58.50, compared to $58.33 in the prior session. The modest price increase occurred amid shifting supply expectations and renewed geopolitical uncertainty.
The International Energy Agency (IEA) warned this week of a potential global oil supply surplus due to rising output from OPEC+ countries and the US.
However, Trump’s statement on India’s planned move to halt Russian imports eased those fears. Trump said that while imports wouldn’t stop immediately, the process would be completed “soon.” He also urged China to follow India’s lead.
Meanwhile, traders remained cautious over the prospect of renewed US-China trade tensions. Last week, Trump announced a 100% tariff on Chinese goods effective Nov. 1 in response to Beijing’s restrictions on rare earth exports. Though he later said trade tensions “will be resolved,” markets remained wary.
US Treasury Secretary Scott Bessent added to the uncertainty, stating that China “can’t be trusted” and urging allies to reduce risks by diversifying sources.
Oil prices also found additional support from expectations of a Fed rate cut at its October meeting. Fed Chair Jerome Powell’s dovish tone earlier this week triggered a pullback in the dollar, providing support to oil.
Prices, which had hit a five-month low earlier in the week, are now recovering modestly as easing oversupply fears and a weaker dollar boost investor confidence.
US President Donald Trump said Wednesday that Indian Prime Minister Narendra Modi has agreed to halt purchasing Russian oil, meeting a key demand from the American leader.
Trump previously imposed 50% tariffs on India as he sought to pressure New Delhi into stopping its purchases of Russian oil, a demand he said Modi agreed to during a telephone call Wednesday, calling the decision “a big stop.”
“He’s not buying his oil from Russia. It started. You know, you can’t do it immediately. It’s a little bit of a process, but the process is going to be over with soon,” Trump told reporters at the White House.
“All we want from President Putin is stop this. Stop killing Ukrainians, and stop killing Russians. Because he’s killing a lot of Russians. Again, it doesn’t make him look good. It’s a war that he should have won in one week, and he’s now going into his fourth year,” he said.
Trump has sought to curtail the purchase of Russian oil on international markets, saying that doing so would accelerate an end to the Kremlin’s war on Ukraine. The US president said he would now focus on getting China “to do the same thing” as India and stop buying Moscow crude. #Oil Rallies as India Halts Russian Seaborne Crude Purchase Forensic Examination in Emefiele’s $4.5bn Fraud Trial Faces Setback
