Crude oil prices traded higher on the Multi Commodity Exchange (MCX) Thursday, following a rally in international oil prices, amid reports that India was preparing to cut Russian oil imports after pressure from the US.
MCX crude oil price was up 0.10% at ₹5,150 per barrel. It hit an intraday high of ₹5,195 level, rallying nearly a percent from its previous closing price. In the global markets, Brent crude oil price rose 0.58% to $62.24 a barrel, while US West Texas Intermediate (WTI) futures climbed 0.62% to $58.65.
Both contracts touched their lowest since early May in the previous session on US-China trade tensions and after the International Energy Agency warned of a big surplus next year as OPEC producers and rivals lift output amid weak demand, Reuters reported.
According to a Reuters report, some Indian refiners are preparing to gradually reduce imports of Russian oil, amid growing pressure from the United States on New Delhi to curb purchases and help end the war in Ukraine.
Earlier, US President Donald Trump said Prime Minister Narendra Modi had assured him that India would stop buying oil from Russia — a move that could tighten supplies in global markets. Trump also stated that after India, Washington would seek similar commitments from China as part of its push to cut Moscow’s energy revenues and press for a peace deal in Ukraine.
India, however, clarified on Thursday that its priority remains ensuring stable energy prices and securing reliable supplies. The foreign ministry did not comment on Trump’s claim regarding India’s Russian oil purchases.
Russia currently accounts for about one-third of India’s total oil imports. India and China remain the two largest buyers of Russian seaborne crude, which is under US and European Union sanctions.
“Investors should prioritize policy intervention risk above currency fluctuations and inflation concerns. Trump’s claim introduces severe supply chain uncertainty, particularly as India’s official statement contradicts this by emphasizing stable prices and secure supply as priorities. The UK’s new sanctions on Rosneft, Lukoil, and 44 shadow fleet tankers compound execution risks,” said Nitant Darekar Research Analyst at Bonanza.
While the 1% oil price jump reflects supply tightening optimism, weak US demand evidenced by gasoline inventory buildup and continued US- China trade tensions suggest fundamental demand weakness persists, he added.
Meanwhile, investors now await the US Energy Information Administration’s (EIA) weekly oil inventory data after mixed signals from the American Petroleum Institute (API) earlier this week.
Crude Oil Price Outlook
Rahul Kalantri, VP Commodities, Mehta Equities Ltd. expects crude oil prices to remain volatile.
“Crude oil prices have support at $57.30 – $56.70 and resistance is at $59.00 – $59.70. MCX crude oil price has support at ₹5,100 – ₹5,040, while resistance is seen at ₹5,220 – ₹5,285 levels,” Kalantri said.
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