Oil prices held steady on Thursday as global market participants assessed the implications of a potential significant shift in India’s crude oil import strategy and continued supply disruptions from Russia.
Brent crude futures climbed $0.29$ (up $0.47\%$) to trade at $62.20$ a barrel, while U.S. West Texas Intermediate (WTI) futures rose $0.31$ (up $0.53\%$) to $58.58$. The price stabilization follows a previous session where contracts touched their lowest levels since early May due to U.S.-China trade tensions.
The primary market focus centers on the possibility of India reducing its Russian oil imports. Following comments from U.S. President Donald Trump, sources familiar with the matter indicated that some Indian refiners are preparing to gradually cut Russian oil purchases, which currently account for about one-third of the country’s total imports. Analysts view this potential reduction as a positive development for crude oil prices, as it would increase demand for non-Russian supplies globally.
However, India’s Foreign Office emphasized that its main goals remain stable energy prices and secure supply, making no immediate confirmation of a definitive halt. Russia, for its part, expressed confidence that its energy partnership with India will continue.
Meanwhile, Russian supply faces ongoing pressure from persistent Ukrainian drone strikes targeting its refineries. This plummeting availability of refined products and crude oil is expected to set a floor under the market, with some analysts suggesting the April low of $58.40$ for Brent may prove difficult to breach.
Further compounding the market, the British government announced new sanctions, directly targeting major Russian energy companies Rosneft and Lukoil, along with a Russian-owned refinery in India and $44$ tankers in the “shadow fleet” transporting Russian oil.
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