Oil prices increased by approximately 1% in early trading on Thursday following remarks from U.S. President Donald Trump, who indicated that Indian Prime Minister Narendra Modi had committed to halting oil purchases from Russia, a country that accounts for roughly one-third of India’s imports. Brent crude futures increased by 57 cents, representing a 0.9% rise, reaching $62.48 per barrel at 0046. U.S. West Texas Intermediate futures also added 0.9%, or 54 cents, to trade at $58.81. Both contracts reached their lowest levels since early May in the prior session, influenced by U.S.-China trade tensions and a warning from the International Energy Agency regarding a significant surplus anticipated next year, as OPEC+ producers and competitors increase output in the context of weak demand.

On Wednesday, Trump stated that India would cease oil purchases from its primary supplier, Russia. He indicated that the U.S. would subsequently aim to persuade China to follow suit, as Washington escalates its efforts to curtail Moscow’s energy revenues and exert pressure for a peace agreement in Ukraine. India and China rank as the leading purchasers of Russian seaborne crude exports, which face sanctions imposed by the U.S. and European Union. For months, Modi maintained a stance against U.S. pressure to cease the acquisition of Russian oil, with Indian officials justifying these purchases as essential for national energy security.

“At the margin, this is a positive development for the crude oil price as it would remove a significant buyer of Russian oil,” stated Tony Sycamore. On Thursday, market participants will be attentive to the forthcoming weekly U.S. inventory statistics from the U.S. Energy Information Administration, following the release of mixed data from the American Petroleum Institute trade group. According to market sources, U.S. crude and gasoline stocks experienced an increase, while distillate inventories saw a decline last week.

Crude stocks experienced an increase of 7.36 million barrels for the week ending October 10, alongside a rise in gasoline inventories by 2.99 million barrels. In contrast, distillate inventories saw a decline of 4.79 million barrels compared to the previous week, according to the sources. Lower distillate inventories indicate a robust demand for diesel; however, the accumulation of crude oil and gasoline stocks implies that demand in the U.S., the leading oil consumer globally, continues to be lackluster. Analysts project an increase in U.S. crude stockpiles of approximately 0.3 million barrels for the previous week.