Trump’s comments lift oil prices

Brent crude’s price has moved higher after US President Donald Trump claimed that India will soon stop purchasing Russian oil.

IMAGE: Model of an oil pumpjack with the Indian flag in the background. Getty Images

Indian Prime Minister Narendra Modi has agreed to stop buying oil from Russia, Trump told reporters during a White House event.

“He [Modi] has assured me there will be no oil purchase from Russia,” Reuters quoted Trump as saying. “Within a short period of time, they [India] would not be buying oil from Russia,” Trump further claimed.

Meanwhile, Russian Deputy Prime Minister Alexander Novak said its energy partnership with India would continue, Reuters reported. "We continue to cooperate with our friendly partners," Novak was quoted, referring to India.

India and China have emerged as the leading purchasers of Russian crude oil, capitalizing on the discounts Moscow has offered since European nations halted imports, and Washington and EU imposed sanctions following Russia’s invasion of Ukraine in February 2022.

“Crude futures were inching up… as attention reverted to Russia supply risk from the West’s efforts to further lower Moscow’s oil revenues,” VANDA Insights’ founder Vandana Hari said.

Off late, the US has singled out New Delhi over its continued purchase of Russian seaborne crude, imposing tariffs on Indian exports to the US. This has added downward pressure on Brent crude.

US negotiators are expected to next try to get China to stop its Russian crude purchases, Reuters reported.

“India's foreign ministry said it will diversify its sourcing while ensuring stable energy prices and secure supplies,” remarked two analysts from ING Bank.

By Aparupa Mazumder

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