Oil prices edged higher on Thursday, rising by nearly 1%, after U.S. President Donald Trump announced that Indian Prime Minister Narendra Modi had agreed to stop purchasing oil from Russia. The statement injected a dose of optimism into the global oil market, which has been under pressure in recent weeks due to trade tensions and forecasts of oversupply.
Brent crude futures rose by 57 cents, or 0.9%, to $62.48 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 54 cents, or 0.9%, to $58.81. The rebound followed a slump in the previous session when both benchmarks hit their lowest levels since early May amid growing concerns about slowing demand and rising production.
Trump’s remarks came amid mounting efforts by Washington to tighten sanctions on Moscow and limit the flow of Russian energy exports following its ongoing conflict in Ukraine. If confirmed, India’s decision to reduce or halt Russian crude imports could mark a significant shift in global oil trade patterns. India is one of the world’s largest oil importers and had previously increased its purchases of discounted Russian crude despite Western pressure.
Market analysts said the announcement added short-term support to prices, though questions remain over how quickly and to what extent India would adjust its sourcing strategy. “Traders are reacting to the geopolitical signal rather than immediate supply changes,” said one commodities analyst. “But if India meaningfully reduces its Russian imports, it could tighten global supplies and push prices higher in the coming weeks.”
The oil market has faced volatility in recent days as investors weigh a mix of geopolitical developments, economic data, and production forecasts. Earlier this week, the International Energy Agency (IEA) warned of a potential supply surplus next year, citing increased output from OPEC+ members and non-OPEC producers combined with sluggish global demand growth.
The warning, coupled with persistent U.S.-China trade tensions, had pushed oil prices lower before Thursday’s rebound. Uncertainty over global economic conditions continues to cast a shadow on energy markets, as investors assess how slower industrial activity and reduced transport demand may curb consumption.
Still, the latest diplomatic developments appear to have steadied sentiment, at least temporarily. Analysts say the market will closely monitor any official confirmation or policy announcements from New Delhi regarding its future oil imports from Russia.
For now, traders remain cautious but hopeful that easing geopolitical friction and strategic production adjustments could help rebalance supply and demand in the months ahead.
