Trump’s statement pushed oil prices up: how the market reacts to the news about India
16 October 09:17
Oil prices began to rise after hitting a five-month low as soon as US President Donald Trump announced that Indian Prime Minister Narendra Modi had promised to stop buying Russian oil. This statement immediately affected the markets, as India is one of the key buyers of energy from Russia. This was reported by "Komersant Ukrainian" with reference to Bloomberg.
According to Bloomberg, on Thursday, October 16, West Texas Intermediate (WTI) crude oil prices rose to almost $59 per barrel, offsetting the previous two-session decline of 2%. The Brent price closed just below $62 per barrel.
Despite the growth, the situation remains uncertain. Trump did not specify when exactly India would stop importing Russian oil, but admitted that it “cannot happen overnight.”
In recent years, India, like China, has been actively using preferential prices for Russian energy, which were sold under restrictions imposed by the G7 countries. These restrictions were intended to reduce Moscow’s profits while preventing a shortage in the market.
The U.S. administration has repeatedly accused Indian companies of making excessive profits from trade with Russia. This issue has been one of the most controversial in the negotiations between Washington and New Delhi on a new trade agreement.
Analysts note that even a symbolic statement by Trump could cause short-term fluctuations in the oil market, as the market is sensitive to any signals of possible changes in the balance of supply and demand.
