FX.co ★ Oil Rises on India Pledge to Halt Russian Imports

On Thursday, WTI crude oil futures climbed towards $59 per barrel, recovering from a five-month low. This uptick followed an announcement by US President Donald Trump, stating that Indian Prime Minister Narendra Modi had committed to ceasing purchases of Russian oil. However, Trump acknowledged that India could not terminate its imports immediately and pledged to encourage China to diminish its Russian oil imports, in alignment with Washington's strategy to tighten pressure on Moscow’s energy revenues. This move alleviated some fears of a possible oversupply, after the International Energy Agency (IEA) projected a surplus of up to 4 million barrels per day by 2026. Concurrently, industry reports revealed a 7.4 million barrel increase in US crude inventories last week, which, if validated by official data, would be the largest rise since July. This accumulation heightens demand concerns amidst ongoing US-China trade tensions, which continue to obscure the consumption forecast.