Oil climbs after Trump says india to halt russian crude purchases

Oil prices rebounded from a five-month low after US President Donald Trump claimed that Indian Prime Minister Narendra Modi had agreed to stop buying Russian oil, a move that could tighten global supply.

Brent crude rose above $62 a barrel after falling 2.2% over the previous two sessions, while West Texas Intermediate traded near $59. Trump did not specify when India would reduce its purchases, and New Delhi has not yet confirmed the decision. India’s foreign ministry said it would diversify its energy sources while maintaining price stability and supply security.

India, along with China, has taken advantage of discounted Russian oil available under the G7 price cap, which was designed to keep global flows steady while limiting Moscow’s wartime revenue. However, Washington has accused Indian firms of profiteering, and the country’s Russian oil imports have become a key obstacle in ongoing US-India trade talks. India’s trade secretary recently said the country could buy an additional $15 billion of US oil, signaling a possible shift in energy strategy.

“This is bullish news for sure,” said Mukesh Sahdev, CEO of Sydney-based consultancy Xanalysts, noting that India has been purchasing around three times more oil from Russia than from the US. Replacing that supply, he added, would likely require greater imports from Middle Eastern producers.

At the same time, the UK imposed new sanctions on Russia’s largest oil companies, as well as two Chinese energy firms and Indian refiner Nayara Energy Ltd., citing their role in handling Russian fuel. Western governments continue to tighten restrictions on Moscow’s energy sector in an effort to cut off funding to the Kremlin and weaken President Vladimir Putin’s war machine.

Despite the short-term rise, crude prices have declined this month amid heightened US-China trade tensions and concerns over slowing demand in the world’s two largest oil-consuming nations. Trump recently said the US is “locked in a trade war with China,” while Treasury Secretary Scott Bessent suggested a temporary pause on tariffs to ease disputes over critical minerals.

Meanwhile, an industry report showed that US crude inventories surged by 7.4 million barrels last week, the largest jump since July — a sign that oversupply concerns may soon reemerge, potentially capping oil’s upward momentum.