Oil prices rise after India pledges to halt Russian imports
West Texas Intermediate (WTI) crude futures rose on Thursday to near $59 a barrel, recovering from five-month lows, after US President Donald Trump announced that Indian Prime Minister Narendra Modi had pledged to halt his country's purchases of Russian oil.
Details of the pledge and its implications
Trump indicated that New Delhi would not be able to halt purchases immediately, but the pledge was an important step in the US campaign to squeeze Russian energy revenues.
Trump also confirmed his intention to continue pressuring China to reduce its imports of Russian oil as well.
Alleviating Oversupply Fears
This announcement helped ease concerns about a potential oversupply in the markets, especially after the International Energy Agency forecasts a surplus of 4 million barrels per day by 2026.
Obstacles to Recovery
Despite this improvement, the oil sector still faces significant challenges, most notably:
• US inventories rose by 7.4 million barrels last week
• Continuing trade tensions between the United States and China
• Slowing global demand amid the ongoing trade war
Market Outlook
Recent developments indicate that the market has become sensitive to any geopolitical news, while fundamental supply and demand indicators remain under pressure. Traders are closely monitoring the official US inventory data due today, which could confirm the largest increase since last July, which could push oil prices back down.
