Oil Rises on New Sanctions & India Concerns
Oil prices rebounded on Thursday after US President Donald Trump said Indian Prime Minister Narendra Modi had promised to halt purchases of Russian oil—a potential global supply cut. However, there is no clear timeline or official confirmation from New Delhi.
Latest Prices (London 10:29 AM):
Brent Dec: $62.20/barrel (+0.5%)
WTI Nov: $58.59/barrel (+0.5%)
Key Catalysts
Trump's claims fueled speculation of a supply tightening, although three of six Indian oil executives see only a short-term decline in Russian imports.
The UK sanctions target a Russian oil giant, two Chinese energy companies, and India's Nayara Energy—additional pressure on Russian product flows.
India and China have previously exploited Russian discounts under the G7 price cap mechanism; the US has accused some actors of “profiteering,” while India has said it is ready to increase its imports by $15 billion from the US.
Headwinds: Demand & Stocks
US-China trade tensions are exacerbating demand concerns in the world's two largest consumers.
Major trading houses believe oversupply is beginning to emerge.
Industry reports show US inventories increased by 7.4 million barrels last week—if confirmed by tonight's official data, this would be the largest increase since July.
The narrative of reduced supply (if India actually cuts) clashes with slowing demand and swelling inventories. As long as India's policy confirmation remains unclear, the oil rally could potentially remain stuck in the $59–$62 range.
Source: Newsmaker.id
