Oil up 1% after Trump says India promised to stop buying from Russia

Core Insights - Oil prices increased by approximately 1% following U.S. President Trump's announcement that Indian Prime Minister Modi pledged to stop purchasing oil from Russia, potentially impacting global supply [1][3] - Brent crude futures rose by 54 cents (0.87%) to $62.45 per barrel, while U.S. West Texas Intermediate (WTI) futures increased by 57 cents (0.98%) to $58.84 [1] Group 1: Market Reactions - Both Brent and WTI contracts had previously reached their lowest levels since early May due to U.S.-China trade tensions and warnings from the International Energy Agency about a significant surplus in the coming year as OPEC+ and other producers increase output amid weak demand [2] - The announcement regarding India's commitment to halt oil purchases from Russia is viewed positively for crude oil prices, as it removes a significant buyer from the market [5] Group 2: Geopolitical Context - India, which relies on Russia for about one-third of its oil imports, has been under U.S. pressure to cease these purchases, with Indian officials previously defending the imports as essential for national energy security [5] - The U.S. Treasury Secretary indicated expectations for Japan to also stop importing Russian energy, highlighting a broader strategy to cut off Moscow's energy revenues [4] Group 3: Sanctions and Regulatory Actions - The UK government announced new sanctions targeting major Russian energy companies, including Rosneft and Lukoil, affecting multiple oil terminals and entities involved in transporting Russian oil [6] - The sanctions also include specific entities such as Nayara Energy Limited, a Russian-owned refinery in India, indicating a tightening of the regulatory environment surrounding Russian oil imports [6] Group 4: Upcoming Market Indicators - Investors are anticipating the release of weekly U.S. inventory statistics from the Energy Information Administration (EIA), following mixed data from the American Petroleum Institute (API) [7]