FX.co ★ Oil Pulls Back to 5-Month Low

On Thursday, futures for West Texas Intermediate (WTI) crude oil declined to $58.4 per barrel, marking the lowest price since May. This drop was primarily due to a more substantial-than-anticipated increase in US crude oil inventories and uncertain reports concerning India's purchase of Russian oil. The US Energy Information Administration reported that energy companies added 3.524 million barrels of crude to storage for the week ending October 10, which has spurred apprehensions about dwindling demand amid ongoing trade tensions between the US and China. The volatility in prices was further influenced by US President Donald Trump's statement suggesting that Indian Prime Minister Narendra Modi had consented to cease importing Russian crude oil, potentially reducing global supply. However, India's foreign ministry quickly refuted any such discussions, stating it was unaware of any conversation between the two leaders. Additionally, executives from Indian refineries indicated they hadn't received information on any policy alterations, though some anticipate short-term reductions in Russian oil imports. These mixed messages arise amid tense trade relations between the US and India following Trump's imposition of a 50% tariff on Indian goods.