Oil prices rise after Trump claims India will halt Russian oil imports

[Stack of Blue Industrial Barrels Stored at a Manufacturing Facility]

Oil prices ticked up on Thursday, rising around 1% in early trade after U.S. President Donald Trump said Indian Prime Minister Narendra Modi had pledged his country would stop buying oil from Russia.

U.S. crude climbed (CL1:COM [https://seekingalpha.com/symbol/CL1:COM#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]) +0.94% to $58.82/bbl, while Brent crude (CO1:COM [https://seekingalpha.com/symbol/CO1:COM#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]) was up +0.9% at $62.41.

Trump said Wednesday that India would stop buying oil from its top supplier, Russia, and that the U.S. would next push China to follow suit.

Trump has previously imposed tariffs on Indian exports to the U.S. to discourage purchases of Russian oil, as he seeks to choke off Russia's oil revenues and pressure President Putin to negotiate a peace deal in Ukraine.

India and China are the two top buyers of Russian seaborne crude exports, which are sanctioned by the U.S. and European Union.

“At the margin, this is a positive development for the crude oil price as it would remove a big buyer (India) of Russian oil,” Tony Sycamore, a market analyst at IG, told _Reuters_.

Both contracts touched their lowest since early May in the previous session, weighed down by U.S.-China trade tensions, and after the International Energy Agency warned of a big surplus next year as OPEC+ producers boost output amid weak demand.

"However, that surge in output may not be what it seems. While crude oil production from the group rose for the second consecutive month in September, it trailed the quota ceiling this month," ANZ analysts said.

"This is partly due to some members still implementing compensation cuts for over producing earlier in the year. However, others are struggling to raise output due to a lack of investment in recent years which has lowered their effective capacity."

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