FX.co ★ Oil Pares Gains on Uncertainty over India Russian Crude Purchases

West Texas Intermediate (WTI) crude oil futures experienced a reduction in earlier gains, settling at $58.6 per barrel on Thursday. The market faced challenges in recovering from a five-month low, as investors contended with conflicting information regarding India's importation of Russian oil. Initially, prices increased following U.S. President Donald Trump's announcement that Indian Prime Minister Narendra Modi had committed to ceasing Russian crude imports, a move poised to constrict global supply. Contrary to this, India's Ministry of External Affairs promptly refuted any such discussions, expressing unawareness of any dialogue between the two leaders. Executives within Indian refineries also reported a lack of notification regarding any policy changes, although some anticipate a potential short-term reduction in Russian imports. This puzzling situation emerges amidst tense U.S.-India trade relations, exacerbated by Trump's imposition of a 50% tariff on Indian goods. Concurrently, industry reports revealed a 7.4 million-barrel increase in U.S. crude inventories last week, intensifying demand concerns amid ongoing U.S.-China trade tensions which continue to overshadow global consumption forecasts.