Oil Rises After India Says It Stopped Buying from Russia
Oil prices rose on Thursday (October 16, 2025) after US President Donald Trump announced that Indian Prime Minister Narendra Modi had agreed to stop buying oil from Russia. This statement sparked concerns about a global supply shortage. Brent crude rose 0.6% to $62.28 per barrel, and WTI rose 0.7% to $58.68 per barrel, after declining for two consecutive days. Although there has been no official confirmation from India, the country's foreign ministry stated that it would diversify its energy sources while maintaining stable prices and supply.
India has been a major buyer of Russian oil, taking advantage of discounts under the G7 price cap. If India were to stop buying, it would need to seek replacement supplies from the Middle East. Analysts expect this move to have a significant impact on the market, given that India has purchased three times as much Russian oil as it has from the US in recent months. The US, on the other hand, has called India's purchases a form of one-sided advantage, which has become a stumbling block in trade talks between the two countries.
Meanwhile, pressure on Russia's energy sector continues to mount. The UK has imposed sanctions on major Russian oil producers and several Chinese and Indian energy companies still involved in the Russian oil trade. Amid US-China trade tensions and concerns about a global oversupply, industry reports also showed a surge in US oil inventories of 7.4 million barrels last week—the highest since July—which could put downward pressure on prices going forward. However, for now, the potential for supply disruptions from India remains the primary price driver. (asd)
Source: Newsmaker.id
