Oil prices rose by about 1% on Thursday after US President Donald Trump said that Indian Prime Minister Narendra Modi had promised that his country would stop buying oil from Russia, which could lead to supply cuts elsewhere, UNN reports with reference to Reuters.
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Brent crude futures rose 54 cents, or 0.87%, to $62.45 a barrel by 04:30 GMT (07:30 Kyiv time). US West Texas Intermediate (WTI) crude futures rose 57 cents, or 0.98%, to $58.84.
Both contracts hit their lowest levels since early May in the previous session amid trade tensions between the US and China and after the International Energy Agency warned of a significant surplus next year, as OPEC+ countries and their rivals increase production amid weak demand.
Trump said on Wednesday that India, which gets about a third of its oil imports from Russia, its main supplier, would stop buying oil from Russia, and the US would try to achieve the same from China, as Washington steps up efforts to cut Moscow's energy revenues and pressure it to reach a peace deal.
India will stop buying Russian oil: Trump's statement16.10.25, 07:49
The Indian embassy in Washington, the publication writes, did not immediately respond to emailed questions about whether Modi had made such a promise to Trump.
Some Indian refineries are preparing to cut Russian oil imports, expecting a gradual reduction, sources familiar with the situation told Reuters.
US Treasury Secretary Scott Bessent also said on Wednesday that he had informed Japanese Finance Minister Katsunobu Kato that the Trump administration expected Japan to stop importing Russian energy.
India and China are the two largest buyers of seaborne Russian oil exports, which are subject to US and EU sanctions. For months, Modi has resisted US pressure to stop buying Russian oil, and Indian officials have defended these purchases as vital for national energy security.
"Ultimately, this is a positive development for oil prices as it will remove a major buyer (India) of Russian oil," said Tony Sycamore, market analyst at IG.
The UK government also announced new sanctions on Wednesday directly targeting Russian companies Rosneft and Lukoil, two of the world's largest energy companies.
Entities subject to sanctions include four oil terminals, the private refinery Shandong Yulong Petrochemical in China, 44 "shadow fleet" tankers carrying Russian oil, and Nayara Energy Limited, a Russian-controlled refinery in India.
UK authorities impose sanctions against Rosneft and Lukoil15.10.25, 15:34
On Thursday, investors will monitor the weekly release of US oil inventory statistics. Market sources, citing API data released on Wednesday, said that US crude and gasoline inventories rose last week, while distillate inventories fell. While the decline in distillate inventories indicates an increase in demand for diesel fuel, the rise in crude and gasoline inventories suggests that demand in the US, the world's largest oil consumer, remains weak. Analysts predict that US oil inventories rose by approximately 0.3 million barrels last week.