Oct 16, 2025
Oil prices increase by 1% after Trump announces that India has pledged to halt purchases from Russia.
Oil prices increased by approximately 1% on Thursday after U.S. President Donald Trump stated that Indian Prime Minister Narendra Modi had committed to halting oil purchases from Russia, potentially impacting supply in other markets.
Brent crude futures gained 56 cents, or 0.9%, reaching $62.47 a barrel by 0655 GMT. U.S. West Texas Intermediate (WTI) futures rose 58 cents, or 1%, to $58.85.
Both contracts had hit their lowest levels since early May in the previous session due to U.S.-China trade tensions and a warning from the International Energy Agency about a significant surplus next year as OPEC+ and other producers increase output amid weak demand.
Trump mentioned on Wednesday that India, which sources about one-third of its oil imports from Russia, would stop buying Russian oil, with the U.S. planning to persuade China to follow suit as it intensifies efforts to cut off Moscow's energy revenues and pressure it into negotiating a peace deal in Ukraine.
However, India clarified on Thursday that its main priorities are maintaining stable energy prices and securing supply, with no mention of Trump's statement regarding Russian oil purchases.
Some Indian refiners are ready to reduce their imports of Russian oil gradually, according to three sources familiar with the situation.
U.S. Treasury Secretary Scott Bessent also stated on Wednesday that he informed Japanese Finance Minister Katsunobu Kato of the expectation that Japan would cease importing Russian energy.
India and China are the top purchasers of Russian seaborne crude exports, which face sanctions from the U.S. and the European Union. Modi has resisted U.S. pressure to stop these purchases for months, with Indian officials arguing that they are critical for national energy security.
Market analyst Tony Sycamore at IG remarked that this development is positive for crude oil prices as it removes a significant buyer (India) of Russian oil.
The UK government announced new sanctions on Wednesday, specifically targeting Russia's Rosneft and Lukoil, two of the largest energy firms worldwide.
The sanctions affect four oil terminals, the private Chinese refiner Shandong Yulong Petrochemical, 44 tankers in the "shadow fleet" transporting Russian oil, and Nayara Energy Limited, a Russian-owned refinery in India.
Later on Thursday, investors will look for the release of weekly U.S. inventory statistics from the U.S. Energy Information Administration (EIA) following mixed data from the American Petroleum Institute (API).
U.S. crude and gasoline stocks rose while distillate inventories decreased last week, according to market sources referencing API figures.
Crude inventories increased by 7.36 million barrels for the week ending October 10, and gasoline stocks rose by 2.99 million barrels, while distillate inventories dropped by 4.79 million barrels compared to the prior week.
While the lower distillate inventories suggest stronger diesel demand, the increase in crude oil and gasoline stocks indicates that demand in the U.S., the world's largest oil consumer, remains sluggish. Analysts predict that last week U.S. crude stockpiles rose by about 0.3 million barrels.
Brent crude futures gained 56 cents, or 0.9%, reaching $62.47 a barrel by 0655 GMT. U.S. West Texas Intermediate (WTI) futures rose 58 cents, or 1%, to $58.85.
Both contracts had hit their lowest levels since early May in the previous session due to U.S.-China trade tensions and a warning from the International Energy Agency about a significant surplus next year as OPEC+ and other producers increase output amid weak demand.
Trump mentioned on Wednesday that India, which sources about one-third of its oil imports from Russia, would stop buying Russian oil, with the U.S. planning to persuade China to follow suit as it intensifies efforts to cut off Moscow's energy revenues and pressure it into negotiating a peace deal in Ukraine.
However, India clarified on Thursday that its main priorities are maintaining stable energy prices and securing supply, with no mention of Trump's statement regarding Russian oil purchases.
Some Indian refiners are ready to reduce their imports of Russian oil gradually, according to three sources familiar with the situation.
U.S. Treasury Secretary Scott Bessent also stated on Wednesday that he informed Japanese Finance Minister Katsunobu Kato of the expectation that Japan would cease importing Russian energy.
India and China are the top purchasers of Russian seaborne crude exports, which face sanctions from the U.S. and the European Union. Modi has resisted U.S. pressure to stop these purchases for months, with Indian officials arguing that they are critical for national energy security.
Market analyst Tony Sycamore at IG remarked that this development is positive for crude oil prices as it removes a significant buyer (India) of Russian oil.
The UK government announced new sanctions on Wednesday, specifically targeting Russia's Rosneft and Lukoil, two of the largest energy firms worldwide.
The sanctions affect four oil terminals, the private Chinese refiner Shandong Yulong Petrochemical, 44 tankers in the "shadow fleet" transporting Russian oil, and Nayara Energy Limited, a Russian-owned refinery in India.
Later on Thursday, investors will look for the release of weekly U.S. inventory statistics from the U.S. Energy Information Administration (EIA) following mixed data from the American Petroleum Institute (API).
U.S. crude and gasoline stocks rose while distillate inventories decreased last week, according to market sources referencing API figures.
Crude inventories increased by 7.36 million barrels for the week ending October 10, and gasoline stocks rose by 2.99 million barrels, while distillate inventories dropped by 4.79 million barrels compared to the prior week.
While the lower distillate inventories suggest stronger diesel demand, the increase in crude oil and gasoline stocks indicates that demand in the U.S., the world's largest oil consumer, remains sluggish. Analysts predict that last week U.S. crude stockpiles rose by about 0.3 million barrels.