Oil rises as Trump says India will stop buying Russian supply

Oil rose from a five-month low after US President Donald Trump said Indian Prime Minister Narendra Modi had vowed to halt purchases of Russian barrels, a move that could squeeze global supply.

Brent traded above $62 a barrel after sliding 2.2% over the previous two sessions, while West Texas Intermediate was near $59. Trump’s claim didn’t give an exact timeline for India’s curtailment, and there hasn’t yet been an official confirmation from New Delhi.

India, along with neighbor China, has made the most of discounted Russian supplies accessible under a Group of Seven price cap mechanism that was designed to keep oil flowing while limiting Moscow’s access to funds for its war in Ukraine. However, senior US officials have accused Indian businesses of profiteering and the purchases have been a main sticking point as New Delhi seeks to fast-track trade talks. Its trade secretary on Wednesday said his nation has the capacity to purchase an additional $15 billion of oil from the US.

Meanwhile, the UK slapped sanctions on Russia’s biggest oil producers, two Chinese energy firms and Indian refiner Nayara Energy Ltd. because of their handling of Russian fuel. Western nations are turning the screws on Russia’s energy sector in a bid to curb the flow of petrodollars to the Kremlin and limit President Vladimir Putin’s ability to finance the war in Ukraine.

Crude has fallen this month as increased trade tensions between the US and China raised concerns about demand in the two biggest crude consumers, and as major trading houses said a long-anticipated oversupply is already starting to emerge. Trump said he saw the US as locked in a trade war with China, even as Treasury Secretary Scott Bessent proposed a longer pause on high tariffs on Chinese goods to resolve a conflict over critical minerals.

Meanwhile, an industry report indicated US inventories jumped by 7.4 million barrels last week. That would be the biggest increase since July if confirmed by official data due later Thursday.

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