Oil Strengthens, a Condition for a US-India Deal?
Oil prices surged after reports emerged that the US and India were close to reaching a trade agreement that could see India gradually reduce Russian oil imports. If this were to happen, India's demand for alternative grades could potentially increase, boosting prices. Brent briefly rose 1.9% to reach $62/barrel, while WTI approached $59.
The agreement is also said to lower tariffs on Indian exports. Analyst Vandana Hari said a trade truce would be positive for economic momentum and oil demand sentiment; if India actually cuts Russian oil, it would support prices. President Donald Trump said PM Narendra Modi would confirm he would reduce Russian imports; Modi acknowledged the call, while Indian refiners signaled cuts, not halts.
Despite the increase, oil is still likely to post a third monthly decline due to signs of a global surplus. The recent price weakness has been used by the US government to replenish its strategic reserves (SPR): the US plans to purchase 1 million barrels for December-January delivery.
On the stock side, the API reported that US crude inventories fell 3 million barrels last week, and gasoline also declined. Official government data (EIA) followed later. At 1:01 p.m. Singapore time, the December Brent contract rose 1.6% to $62.30, while the December WTI contract strengthened 1.7% to $58.21. (asd)
Source: Newsmaker.id
