Oil prices traded flat on Thursday as markets prepare for the possibility of India halting oil imports from Russia. Such a move could alter the global supply balance and increase demand for other suppliers.
Brent crude rose 0.47% to $62.20 a barrel, while WTI crude rose 0.53% to $58.58 a barrel. Prices recovered after falling to their lowest levels since early May in the previous session due to US-China trade tensions.
Energy Balance Between India and Russia
US President Donald Trump announced that Indian Prime Minister Narendra Modi promised that his country would stop buying oil from Russia. However, the Indian Ministry of Energy did not directly respond to this statement, stating that its priorities are energy supply security and price stability.
According to sources, some Indian refineries are planning to gradually reduce their dependence on Russian oil. Analyst Tony Sycamore said, “This development is positive for crude oil prices because it removes a major buyer (India) from the market.”
On the Russian side, officials stated that they are confident that the energy partnership will continue. However, the country is facing production disruptions due to Ukraine’s drone attacks on refineries.
New Sanctions and Global Impacts
The UK government announced new sanctions on Wednesday targeting giant energy companies such as Rosneft and Lukoil. The package includes; 44 shadow tankers, including the Chinese Shandong Yulong Petrochemical refinery, four oil terminals, and the Russian-linked Nayara Energy in India.US Treasury Secretary Scott Bessent conveyed to Japan the expectation that it would stop importing Russian energy.
PVM analyst Tamas Varga commented, “The decline in Russian oil supply could create a price floor in the market. Breaking the $58.40 level for Brent will be a difficult task.”
